Question: Please help me answer question 28. 28. A perfectly competitive firm operating in the short run producing 1000 units of output has ATC = $5

Please help me answer question 28.

28. A perfectly competitive firm operating in the short run producing 1000 units of output has ATC = $5 and AFC = $2. The market price is $4 and is equal to MC. This firm is experiencing: a. a shut-down situation and should produce zero units. b. economic profits of $2000. c. economic losses of $1000. d. break-even economic profits. e. economic losses of $3000

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