Other things being equal, if input prices rise in a country, then there would be

Expenditures on advertising ________

A) can lower average total cost if the advertising increases the quantity sold by a large enough amount B) cannot lower average total cost because when a firm advertises it increases its costs C) always lower average total cost because whenever a firm advertises, it increases the quantity sold D) are variable costs so do not affect the average total cost

A firm is currently selling its output for $10 per unit and is producing where marginal revenue equals marginal cost at an output level of 100 units

If the firm's total variable costs are $900 and its fixed costs are $300 should it produce in the short run or shut down?