The firm of economic consultants 'Never Wrong Ltd.' seeks your advice on what would be a profit-maximizing strategy for a client. This client is a firm that operates in a perfectly competitive market with U-shaped average variable cost and average total cost curves. Further information regarding the firm's costs and revenues, at its current level of output, is as follows:

Price	14
MC	12
AVC	8
ATC	9
Increase in output -
MC will	Stay the same
ATC will	Increase

To maximize its profits the firm should:

Remain in operation and increase its output.

Remain in operation and keep its output constant.

Remain in operation and decrease its output.

Shut down operations in the short-run.