Suppose a firm is collecting $1,250 in total revenues and the total costs of its variable factors of production are $1,000 at its current level of...

Suppose a firm is collecting $1,250 in total revenues and the total costs of its variable factors of production are $1,000 at its current level of output. The firm has $500 in fixed costs. In the short run, one can predict that the firm will ____ and in the long run the firm will _____.

shut down; reopen for business

earn a profit; earn a loss

earn a loss; earn a profit

continue to operate; exit the industry