You're Called in as a Consultant: Price Is $24

Multiple Choice

You're called in as a consultant: Price is $24. At a production level of 200 units, MC = MR, AFC = $6, and AVC = $25. What do you advise this firm to do?

A) Increase output.
B) Decrease output.
C) Shut down operations.
D) Stay at the current output; the firm is earning a profit of $1,400.
E) Stay at the current output; the firm is losing $1,400.