3 A profit-maximising firm in a competitive market produces leather wallets. Suppose the market price for leather wallets drops below the minimum of its average total cost. However, the price still lies above the minimum of average variable cost. This means the firm: O A. should raise the price of its product O B. should manufacture leather handbags instead O C. will not reduce its production of wallets O D. will experience losses but will continue to produce wallets