Assume that a profit-maximizing, perfectly competitive firm has economic losses in the short run. If the firm continues to produce and sell its goods, then which of the following must be true?

Answer Options:

a. The firm is covering all of its implicit costs but not all of its explicit costs.

b. The firm is covering all of its fixed and variable costs of production.

c. The firm must have raised the price of its goods in order to minimize its losses.

d. The firm is covering all of its variable costs but not all of its fixed costs of production.

e. The firm is covering all of its fixed costs but not all of its variable costs of production