A Firm Has Positive Fixed Cost and Positive Variable Cost

Multiple Choice

A firm has positive fixed cost and positive variable cost.At its current level of output, marginal cost equals average cost.The firm must

A) not be producing at its profit-maximizing level of output.
B) be producing the quantity that minimizes average cost.
C) be operating at a point at which total variable cost equals total fixed cost.
D) be earning negative profit.