Marginal cost 5 P5 Average total cost P4 Dollars per unit 3 Average variable cost B 92 93 94 95 Quantity per period Refer to Exhibit 8.9, which shows a perfectly competitive firm's short-run output decisions. At price po, the firm a) is indifferent between producing and shutting down. Ob) p )produces at a specific output to earn a normal profit. c) produces nothing. O d) produces at a specific output to minimize its short-run loss