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

-If in the short run, at the profit maximizing level of output, the average revenue curve of a competitive firm lies above the average cost curve then:

A) the firm is incurring losses.
B) the firm is just able to cover its total cost.
C) the firm enjoys above-normal profits.
D) the firm must shut down.
E) the firm is barely able to cover its variable costs.