If Price Is Less Than Minimum Average Variable Cost,a Perfectly

Multiple Choice

If price is less than minimum average variable cost,a perfectly competitive firm that continues to produce in the short run _____

A) earns a positive economic profit.
B) incurs a loss greater than its fixed cost.
C) can cover all of its fixed cost and some of its variable cost.
D) can cover all of its variable cost and some of its fixed cost.
E) can cover both its fixed cost and its variable cost.