Assume that a monopolistically competitive firm faces the following situation: P= $14, output = 9,000 units, MC=
$11, ATC=$18, AVC $15, and MR = $11. Which statement is correct regarding profit maximization?
The firm is maximizing profits.
The firm would minimize its losses if it shut down in the short run.
The firm is minimizing its losses.
The firm would minimize its losses if it decreased output.