At the Level of Output Where Marginal Revenue Equals Marginal

At the level of output where marginal revenue equals marginal cost, price is less than average total cost but greater than average variable cost. In this instance, what action should a profit-maximizing firm take?

A) Continue operating at that output level in the short term, since total revenue will cover all of the firm's fixed costs and a portion of its variable costs.
B) Decrease output to where marginal revenue exceeds marginal cost by the greatest dollar amount.
C) Continue operating at that output level in the short term, since total revenue will cover all of the firm's variable costs and some of its fixed costs.
D) Cease production, as it is incurring an economic loss.