A Company Produces at an Output Level Where Marginal Cost

Multiple Choice

A company produces at an output level where marginal cost is equal to marginal revenue and has the following revenue and cost levels:
Total revenue = $1,450
Total cost = $1,500
Total variable cost = $1,300
What would you suggest?

A) shut down
B) continue to produce because the loss is less than the total fixed cost
C) increase production to lower the marginal cost
D) reduce output to lower the marginal cost
E) raise the price