The Figure Given Below Shows the Demand and Cost Curves

question 104

Multiple Choice

The figure given below shows the demand and cost curves of a perfectly competitive firm.Figure: 10.4
D: Demand curve
MC: Marginal cost curve
ATC: Average-total cost curve
AVC: Average-variable-cost curve
-Some competitive firms are willing to operate at a loss, in the short run, because:

• A)their average variable cost is less than the price.
• B)their fixed costs are less than their current losses.
• C)their average total cost is less than the price.
• D)they do not attempt to maximize profits or minimize losses.
• E)their revenues are at least able to cover their fixed costs.

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