4. The Pampered Pet Shop operates in a perfectly competitive industry and hires you as aneconomic consultant. The firm is currently producing at a point where market priceequals its marginal cost. Its total revenue exceeds its total variable cost, but is less than itstotal cost. You advise the firm to:
(A) cease production immediately because it is incurring a loss.
(B) lower its price so that it can sell more units of output.
(C) raise its price until it breaks even.
(D) produce in the short run to minimize its loss, but exit the industry in the long run.