If P > AVC but P < ATC at the profit-maximizing output, then a perfectly competitive firm is:

Answer Options:

a. Making an economic loss, but should continue to produce at this point

b. Making an economic loss, and should cease production and shut down

c. Minimizing losses, and should cease production and shut down

d. Maximizing profits, and should continue to produce at this point

e. Making economic profits, and should continue to produce at this point