1.A firm's optimal output is 1,000 units per month, with a fixed cost of $300 per month and variable cost of $200 per month. The market price of this good is $0.40. The firm is deciding to shut down or not. In such a situation, this firm should ________.

A) shut down production in the short run

B) not shut down production in the short run

C) produce more than 1,000 units

D) continue production for 1 month but produce less than 1,000 units

Please explain the reason and working behind as well