If an Imperfectly Competitive Firm Is Producing a Level of Output

Multiple Choice

If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and price is equal to average total cost, then the firm

A) should shut down
B) should decrease output, but should not shut down
C) should increase output
D) None of the above is correct