The Perez Lumber Company sells boards in a perfectly competitive market. The current marginal cost of boards at the current output of 445 board feet per month is $3.57 per board foot. The price of lumber is currently $3.57 per board foot, and the minimum possible average variable cost of producing lumber is $3.88 per board foot. If the firm wants to maximize profit (or minimize losses), it should
a. decrease monthly output to 200 board feet.
b. shut down immediately.
c. continue producing at its current output level.
d. increase monthly output above 445 board feet.
b. shut down immediately.
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