If a Competitive Firm's Marginal Costs Always Increase with Output

Multiple Choice

If a competitive firm's marginal costs always increase with output, then at the profit maximizing output level, producer surplus is:

A) zero because marginal costs equal marginal revenue.
B) zero because price equals marginal costs.
C) positive because price exceeds average variable costs.
D) positive because price exceeds average total costs.
E) positive because revenues are increasing faster than variable costs.