Suppose That in a Perfectly Competitive Industry,the Market Price of the Product

Multiple Choice

Suppose that in a perfectly competitive industry,the market price of the product is $27.A firm is producing the output level at which average total cost equals marginal cost,both of which are $25.Average variable cost is $23.To maximize profits in the short run,the firm should

A) reduce its output.
B) increase its output.
C) leave its output unchanged.
D) shut down.
E) change the price of the product.