A firm sets its price at $10.00 per unit. It has an average variable cost of $8.00 and an average fixed cost of $4.00 per unit. In the short run, this firm is

a.unable to cover all of its fixed cost and hence should shut down.b.incurring a loss per unit of $2.00, but since it can still cover its variable costs, should continue to operatec.incurring a loss of $2.00 per unit and should shut down.d.incurring a profit.