Suppose a competitive firm has fixed costs of 250. These fixed costs are unavoidable in the short run and but can be avoided in the long run if the firm exits the industry. Its variable cost function is given by VC = 20q + 2q2 . The price is 60. In order to maximize profit a. The rm would produce an output of 8. b. The rm would earn revenue of 400. c. The rm would shut down in the short run. .r The rm would shut down in the long run. 9. None of the above