The Owner of Tie-Dyed T-Shirts,a Perfectly Competitive Firm,has Hired You

The owner of Tie-Dyed T-shirts,a perfectly competitive firm,has hired you to give him some economic advice.He has told you that the market price for his shirts is $20 and that he is currently producing 200 shirts.At this output his MC is $20,his SAVC is $15 and his SATC is $25.What would you recommend to him?

A) to continue producing in the short run,as his loss from production is less than his fixed costs,but to exit the industry in the long run if there are no changes in economic conditions
B) to shut down in the short run,as he is incurring a loss and to leave the industry in the long run,if there are no changes in economic conditions
C) to continue to produce in the short run,even though he is earning a loss,and to expand in the future with the hope of increasing market share and total revenue
D) You tell him you cannot make any recommendations until you know what his fixed costs are.