ume a perfectly competitive firm sells its output for $150 per unit. At its current 2,000 units of output,?

The correct answer is A, it should increase output. MR=150 and >MC=140,an increase in output will make MC=MR which is the profit maximization. The price is also above the average cost of143, the firm will have a short fall profit. It does not need to shut down because price can cover fixed cost still.