Figure 10-1 ​ Suppose a Perfectly Competitive Firm's Situation Is Shown in Figure

Figure 10-1 ​

Suppose a perfectly competitive firm's situation is shown in Figure 10-1 and the firm is currently producing at B. What should the firm do in this situation?

A) The firm should continue producing at B since that is the short-run equilibrium.
B) The firm should increase production to C, so that MR = MC.
C) The firm should decrease production to lower marginal costs.
D) The firm should lower the price and continue to produce at B.