Scenario: the Fixed Cost of Producing 500 Units of Good

Multiple Choice

Scenario: The fixed cost of producing 500 units of Good Y is $25,000, while the variable cost of producing 500 units of Good Y is $60,000.
-Refer to the scenario above.Which of the following will happen if the equilibrium price charged by a firm producing Good Y in the short run is $130?

A) The firm will earn positive economic profits and continue production.
B) The firm will incur a loss but continue production.
C) New firms will enter the industry in the long run.
D) All firms will incur losses in the long run.