In the short run, a perfectly competitive firm earning negative economic profit is

Answer : A

A) on the downward-sloping portion of its ATC curve.

B) at the minimum of its ATC curve.

C) on the upward-sloping portion of its ATC curve.

D) above its ATC curve.

In the short run, a perfectly competitive firm earning negative economic profit

Answer : C

A) is on the downward-sloping portion of its AVC.

B) is at the minimum of its AVC.

C) is on the upward-sloping portion of its AVC.

D) is not operating on its AVC.

E) can be at any point on its AVC.

What is the differences between these two questions? and how come each has a different answer?

why do we care about ATC in short run?

Please provide sufficient and detail reason