When Acme Dynamite Produces 250 Units of Output, Its Variable

Multiple Choice

When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25. If the price of dynamite drops to $10, should Acme Dynamite continue to operate in the short run?

A) No, because price is less than average total cost.
B) Yes, because price is less than average variable cost.
C) No, because price is not greater than average total cost.
D) Yes, because price is greater than average variable cost.