A profit-maximizing firm continues to operate even though it is it is earning negative short run profit.

The competitive market price of the product is $64.

Which of the following must be true at its chosen level of output?

a. Marginal cost is equal to average total cost.

b. Marginal cost is equal to average fixed cost.

c. Average total cost is less than $64.

d. Average variable cost is less than $64.

e. Average fixed cost is less than $32.