If a perfectly competitive firm is producing in the short run at an output where price is less than average total cost, the firm

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is incurring an economic loss but will continue to operate as long as price is above minimum average variable cost.

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is incurring an economic loss but will continue to operate as long as price is above minimum average fixed cost.

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is breaking even.

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is still making a positive economic profit.

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will shut down.

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