Answer:
Continue operating; $699
Explanation:
The equilibrium price is $10.
MR = MC at 233 units of output.
At this output level, ATC is $12, and AVC is $9.
The AFC or average fixed cost
= ATC - AVC
= $12 - $9
= $3
The total fixed cost
= [tex]AFC\ \times Q[/tex]
= [tex]\$ 3\ \times\ 233[/tex]
= $699
The equilibrium price is able to cover the average variable cost so the firm should continue production in the short run.
