Assume a firm has the following cost and revenue characteristics at its current level of output: price 5 $10.00, average variable cost 5 $8.00, and average fixed cost 5 $4.00. This firm is

a. incurring a loss of $2.00 per unit and should shut down.

b. realizing only a normal profit.

c. realizing an economic profit of $2.00 per unit.

d. incurring a loss per unit of $2.00 but should continue to operate in the short run.