A) The firm should always shut down.
B) The firm will always continue to produce at a loss.
C) The firm will produce if the price covers average variable cost.
D) The firm will produce if the price is below average variable cost.
For Explanation Click Here:
In the short run, a firm experiencing losses will continue to produce if the price covers its average variable cost, as this helps minimize losses. If the price is below AVC, the firm should shut down.