Consider a firm in each of the following three situations, and explain whether the firm will produce in the short run or shut down in the short run. Situation 1 Situation 2 Situation 3 Price $10.00 $10.00 $10.00 Quantity 1,000 1,000 1,000 Variable cost $5,000 $5,000 $11,000 Fixed cost $5,000 $6,000 $5,000 Marginal cost of 1,000th unit $10.00 $10.00 $10.00 In situation 1, the firm should OA shut down since the price is loss than the average variable cont. O produce 1,000 units of output and have an economic profit of $1.00 per unit. OC. produce 1 000 units of outputut in tout since the price is less than the average total com OD. produce 1000 units of output and break even with a price of $10.00 In studion 2, the firm should O produce 1 000 wels of output and have an economie profit of 5100 per unit. shut down since the price is than the average variable cost OC. produce 1000 units of output and break even with a price of $10.00 OD. produce 1.000 unts of potatoence the price is less than the average total com into the should Oh duwince there is a there are so Or 1.000 Winterthane new Vouw