A perfectly competitive firm will produce:

A) whenever it can.
B) mostly in the long run and only if price is greater than AFC.
C) with a loss in the short run if its price is greater than AVC but less than ATC.
D) only when it earns profits in the short run.

AVC

Average Variable Cost refers to the cost of variable inputs divided by the quantity of output produced.

ATC

Average Total Cost; the total cost divided by the quantity produced, representing the cost per unit of output.

AFC

Stands for Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.