The Following Questions Are Based on the Key Below

The following questions are based on the key below.Assume that you are given cost and price data for a number of competitive firms at their present output levels.In all cases the marginal cost is increasing.With this information,indicate whether each firm should,in the short run:
1.produce more
2.produce less.
3.shut down
4.cannot be determined from the information.
-Refer to the information above to answer this question.If the price exceeds the firm's marginal cost and is above its average variable costs,what should the firm do?

A) 1.
B) 2.
C) 3.
D) 4.