Let's say that you know the following information for an oligopoly firm:

Total Revenue equals $25 million.

Total Costs are $28 million.

Fixed Costs equal $2 million.

The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising).

What recommendation do you have for this firm?

Group of answer choices

A. The firm should continue to produce 2,000 products since it is producing a quantity at which MC equals MR.

B. The firm should produce more quantity and sell more products since it is operating at a loss.

C. The firm should temporarily shut down until either the costs decrease or the revenue increases.

D. The firm should produce fewer products in order to decrease its marginal costs. The profit maximizing quantity occurs at the point where ATC is at its lowest.