If a comparison between average cost and price reveals whether a firm is earning profits, then a comparison between average variable cost and price reveals

a)

total revenues are the quantity produced multiplied by the price.

b)

whether the firm is earning profit if fixed costs are left out of the calculation.

c)

that if the market price exceeds average cost, profits will be positive.

d)

that if the market price is below average cost, then profits will be negative.