Text Alternative Multiple Choice Question Which of the following statements is true of the firm represented by this graph? Multiple choice question. The firm incurs a loss and should shut down operations immediately because average variable cost exceeds price. The firm incurs a profit and should continue to operate because price exceeds the lowest average variable cost. The firm incurs a profit but should shut down due to its high average total costs. The firm incurs a loss but should continue to operate because price exceeds the lowest average variable cost.