A Perfectly Competitive Firm Is Maximizing Profit or Minimizing Loss

Multiple Choice

A perfectly competitive firm is maximizing profit or minimizing loss if it is producing the quantity at which

A) marginal cost equals price and price is not below minimum average variable cost.
B) marginal cost equals price and price is not below minimum average fixed cost.
C) total revenue is at a maximum.
D) average variable cost is at a minimum.
E) average total cost is at a minimum.