A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 2,500 units is $3.80. The minimum possible average variable cost is $2.30. The market price of the product is $3.20. To maximize profits or minimize losses, the firm should

Multiple Choice

• continue producing 2,500 units.
• shut down.
• increase production.
• continue production, but reduce output.