Refer to the Following Figure

Multiple Choice

Refer to the following figure:

The figure above shows cost curves for a perfectly competitive firm.
-Suppose that market price is $2.60. A firm producing 800 units of output

A) is earning the maximum amount of profit, $880.
B) is earning the maximum amount of profit, $2,080.
C) should produce 500 units of output instead, to earn profits of $500.
D) should produce 1100 units of output instead, to earn profits of $1,100.
E) should shut down