At a Firm's Profit-Maximizing Level of Output, Its Price Is

Multiple Choice

At a firm's profit-maximizing level of output, its price is $200 and its short-run average total cost is $225. The firm

A) has a profit of $25 per unit of output.
B) should shut down if its short-run average fixed cost is less than $25.
C) has a loss of $100 per unit of output.
D) should shut down if its short-run average variable cost exceeds $25.