The Figure Given Below Shows the Revenue and Cost Curves

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.1

-A perfectly competitive firm incurs a loss in the short run, if at the profit maximizing level of output:

A) the marginal revenue curve lies below the marginal cost curve.
B) the marginal revenue curve lies above the average revenue curve.
C) the average cost curve lies below the average revenue curve.
D) the average revenue curve lies below the average cost curve.
E) the marginal revenue curve lies above the marginal cost curve.