Which of the following is true in the context of perfectly competitive markets?

I. If P>MC, the firm is producing too little output.

II. If AVC>MC, marginal cost is increasing.

III. ATC starts above AVC, but as output increases, ATC gets closer to and eventually crosses below AVC.

Group of answer choices

I and III

III only

II only

I and II

I only

I, II and III