Which of the following statements is definitely true when price is less than average total cost for a firm producing the profit-maximizing level of output in the short run?
a. the firm will be earning negative total revenue.
b. the firm is running a loss in an accounting sense, so that total revenue is less than total explicit costs.
c. the firm is incurring an economic loss.
d. the firm will minimize its losses by shutting down.
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