Consider a firm in each of the following three situations, and explain whether the firm will produce in the short run or shut down in the short run. situation 1 situation 2 situation 3 price $10.00 $10.00 $10.00 quantity 1,000 1,000 1,000 variable cost $5,000 $5,000 $11,000 fixed cost $5,000 $6,000 $5,000 marginal cost of 1,000th unit $10.00 $10.00 $10.00 in situation 1, the firm should a. produce 1,000 units of output at a loss since the price is less than the average total cost. b. produce 1,000 units of output and have an economic profit of $1.00 per unit. c. produce 1,000 units of output and break even with a price of $10.00. d. shut down since the price is less than the average variable cost. in situation 2, the firm should a. produce 1,000 units of output and break even with a price of $10.00. b. produce 1,000 units of output and have an economic profit of $1.00 per unit. c. shut down since the price is less than the average variable cost. d. produce 1,000 units of output at a loss since the price is less than the average total cost. in situation 3, the firm should a. produce 1,000 units of output and have an economic profit of $1.00 per unit. b. produce 1,000 units of output and break even with a price of $10.00. c. shut down since the price is less than the average variable cost. d. produce 1,000 units of output at a loss since the price is less than the average total cost.