Consider the Following Cost Curves for Two Perfectly Competitive Firms

Consider the following cost curves for two perfectly competitive firms, A and B. FIGURE 9- 4
-Refer to Figure 9- 4. If Firm B is producing at output level q2, and selling its output at p0, then Firm B should

A) shut down because at this price and output level the firm is suffering losses.
B) expand output to q0 so that profits will be maximized.
C) remain at this output level because profits are maximized when SRAVC is at its minimum.
D) expand output to q1 because profits are maximized when SRATC is at its minimum.