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The Taste Freeze Ice Cream Company is a perfectly competitive firm producing where MR = MC

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The Taste Freeze Ice Cream Company is a perfectly competitive firm producing where MR = MC. The current market price of an ice cream sandwich is $5.00. Taste Freeze sells 200 ice cream sandwiches. Its AVC is $4.00 and its AFC is $3.00.

What should Taste Freeze do?

A. Continue to produce because price exceeds AVC .

B. Shut down production so that AVC will decrease.

C. Increase down and produce zero sandwiches because the price is less than ATC.

D. Decrease production so that AFC will decrease.