Suppose That at a Firm's Profit-Maximizing Level of Output, Its

Multiple Choice

Suppose that at a firm's profit-maximizing level of output, its total revenue is $1,250, the total cost of its variable factors of production is $1,000, and its total fixed cost is $500. This firm will ________ in the short run, and will ________ in the long run.

A) shut down; reopen for business
B) earn a profit; earn a loss
C) earn a loss; earn a profit
D) not shut down; exit the industry