If the Price of Its Product Falls Below the Minimum

Multiple Choice

If the price of its product falls below the minimum point on the AVC curve, the best a perfectly competitive firm can do is to

A) keep producing and incur an economic loss equal to its total variable cost.
B) keep producing and incur an economic loss equal to its total fixed cost.
C) shut down and incur an economic loss equal to its total variable cost.
D) shut down and incur an economic loss equal to its total fixed cost.