When average variable costs are minimized, firms in perfect competition are achieving:

When average variable costs are minimized in a perfectly competitive market, firms are achieving efficient production. This occurs because minimizing average variable costs allows firms to produce goods at the lowest possible cost per unit. In perfect competition, firms are price takers and cannot influence market prices; thus, they will strive to optimize their production processes to remain profitable or minimize losses.

Efficient production is characterized by the use of resources in such a way that no additional output can be achieved without incurring higher costs. By minimizing average variable costs, firms can maximize their contribution margin, which can lead to higher profits or reduced losses. This efficient allocation of resources is essential in perfectly competitive markets, where firms must respond to market signals and maintain competitiveness in pricing.

In contrast, the other options represent circumstances that do not inherently indicate efficient production: total loss would suggest that the firm is not able to cover its costs, maximum revenue does not consider cost efficiencies, and price discrimination doesn't apply in perfect competition as firms must sell at the market price. Therefore, efficient production is the correct interpretation for minimizing average variable costs in this context.