At the level of output where marginal revenue equals marginal cost,assume that the price of a competitive firm's product is between the firm's average total cost curve and its average variable cost curve.In this case the firm would

A) decrease output to reduce the costs.
B) continue to operate in the short run.
C) shut down.
D) increase output to increase profit.
E) continue to operate indefinitely.

Marginal Revenue

The additional income generated from selling one more unit of a good or service, crucial for understanding profit maximization strategies in firms.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced.

Average Variable Cost

The total variable cost of production divided by the number of units produced, indicating the variable cost per unit.