7. Mr. Jones operates a business in a competitive market. The current market price is $9.00. At his profit-maximizing level of production, the average variable cost is $9.5, and the average total cost is $9.75. Mr. Jones should

a.

shut down his business in the short run but continue to operate in the long run.

b.

continue to operate in the short run but shut down in the long run.

c.

continue to operate in both the short run and long run.

d.

shut down in both the short run and long run.