[Figure C] Assume that the competitive market price for the firm's product is CB. If the firm is currently producing quantity QO what should it do?

A. Shut down because it cannot cover its costs with revenues

B. Hire additional staff to reduce the gap between AVC and ATC

C. Reduce the quantity being produced to increase the gap between AVC and ATC.

D. Increase production to QB

Cost MC AFC CD ATC Cc - - - - AVC CB CA Co AFC Qo QA QBec QD Quantity Figure C: Costs