Equilibrium Price Is $22 in a Perfectly Competitive Market

Multiple Choice

Equilibrium price is $22 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 200 units of output. At 200 units, ATC is $23, and AVC is $18. The best policy for this firm is to __________ in the short run. Also, this firm earns __________ of __________ if it produces and sells 200 units. Finally, the difference between total variable cost and total fixed cost for this firm is __________.

A) continue to produce, profits, $1800, $3,600
B) shut down, losses, $200, $3,600
C) continue to produce, losses, $200, $2,600
D) shut down, profits, $200, $1,800
E) none of the above