If a firm is enjoying modest accounting profit but incurring significant economic losses, which of the following must be true?

A) The explicit costs of the business are greater than its total revenue.

B) The firm's marginal revenue is greater than its marginal cost.

C) The business should increase production until marginal cost is greater than average total cost.

D) The business will shut down in the short run.

E) The business has another opportunity that could bring in much more revenue.

A business is taking on economic losses in the short run. Which of the following must be true if it continues to produce during this period?

A) The business is making significant accounting profit.

B) The business's accounting losses must be less than its economic profit.

C) The business knows it can lower its costs in the long run while maintaining production.

D) The variable costs of the business are covered but not all of its fixed costs.

E) It is not producing where marginal cost equals marginal revenue.