Billy Bob's Fertilizer Engineers, a Perfectly Competitive Firm, Is Incurring

Multiple Choice

Billy Bob's Fertilizer Engineers, a perfectly competitive firm, is incurring a loss, but the price is still above minimum average variable cost. Then in the short run this firm should ________, and in the long run, if there is no change in economic conditions, this firm should ________.

A) shut down; exit the industry
B) shut down; expand
C) produce where MR = MC; exit the industry
D) produce where MR = MC; expand