Equilibrium Price Is $10 in a Perfectly Competitive Market

Multiple Choice

Equilibrium price is $10 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 1,200 units of output. At 1,200 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 1,200 units.

A) shut down; losses; $15,600
B) shut down; losses; $9,600
C) continue to produce; losses; $15,600
D) continue to produce; profits; $15,600