Suppose that when a perfectly competitive firm produces 500 units of output a day, it earns an economic loss. If the price of each unit of output is $1.50, then, in the short run, it's clear that this firm:
a) is not maximizing its profit.
b) should shut down.
c) should produce more than 500 units a day.
d) should not shut down if its total variable cost is less than $750.
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