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 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-A firm should not necessarily shut down if:

A) total revenue is less than total variable cost.
B) firms suffer losses and the price is above variable costs.
C) the demand curve facing the firm lies below its average variable cost curve.
D) price is less than average variable cost.
E) firms suffer losses and the price is below variable costs.