A perfectly competitive small organic farm produces 1,000 cauliflower heads in the short run. Its ATC = $6 and AFC = $2. The market price is $3 per head and is equal to MC. To maximize profits or minimize losses, this farm should:
A) increase output.
B) reduce output but continue to produce.
C) shut down.
D) do nothing; the firm is already maximizing profits.
Correct Answer:
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