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 equals the firm's marginal cost,what should the firm do?

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