Question: Assume a profit maximizing firm’s short run cost is TC = 700+60Q. If its demand curve is P=300-15Q, what should it do in the short run?

a. _____ shut down.

b. _____ continue operating in the short run even though it is losing money.

c. _____ continue operating because it is earning an economic profit.

d. _____ can not be determined from the above information.