Question: How would I determine this problem? Question 21 2 pts Consider the following data: equilibrium price = $12.50, quantity of output produced = 1,000 units,

How would I determine this problem?

How would I determine this problem? Question 21 2 pts Consider the

Question 21 2 pts Consider the following data: equilibrium price = $12.50, quantity of output produced = 1,000 units, average total cost = $15, and average variable cost = $13. What will the firm do and why? Shut down in the short run, because price is below average variable cost. O Shut down in the short run, because it will be taking a loss of $2,500 if it continues to produce which is less than the loss it will earn if it shuts down. O Continue to produce in the short run, because price is greater than average variable cost. O Continue to produce in the short run, because firms are always stuck with having to produce in the short run O none of the above

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