Econ question...please hellpppppppp!?

Question

Vito's Salmon Farm produced 1200 fish last week.

The marginal cost was $40 a fish, average variable cost was $25 a fish, and the market price was $37 a fish.

Vito is _____ profit, so if nothing changes he will _____the number of fish he produces to maximize his profit this week.

A. maximizing, not change

B. maximizing, increase

C. maximizing, decrease

D. not maximizing, increase

E. not maximizing, decrease

An explanation would be appreciated! thankssss!

Answer 1

E. not maximizing, decrease

If firm's MC>MR (40>37) then it should reduce output till it reaches MR=MC condition.

Answer 2

If the market price is BELOW the marginal cost, that means he is definitely not maximizing his profit. He should decrease the number of fish he produces to decrease his losses.