Which of the following is TRUE about competitive firms’ managerial decision in the short run?
A. A firm should choose to produce output as long as price is equal to short-run marginal costs, rather than shut down.
B. A firm should produce output if total revenue can cover total fixed cost, losing an amount equal to total variable costs.
C. A firm should shut down and produce nothing if total revenue cannot cover total avoidable cost, losing an amount equal to total fixed costs.
D. A firm should choose to produce output as long as price is greater than or equal to short-run marginal cost, rather than shut down.