At Its Present Rate of Output, 200 Units, a Perfectly

Multiple Choice

At its present rate of output, 200 units, a perfectly competitive firm has variable costs of $10, 000 and marginal cost of $50, and accepts the market price of $40 per unit.To improve its profit/loss situation, this firm should

A) increase output
B) reduce output but not to zero
C) maintain the present rate of output
D) shut down
E) raise the price