Exhibit 23-4 -Refer to Exhibit 23-4.Equilibrium Price Is P₁,and the Firm Produces

Exhibit 23-4

-Refer to Exhibit 23-4.Equilibrium price is P₁,and the firm produces Q₁.At this level of output,average variable cost and average total cost are indicated by the dots.Given this situation,the firm is

A) receiving a profit equal to area 3.
B) taking a loss equal to areas 2 + 3.
C) earning total revenue equal to areas 1 + 2.
D) receiving a profit equal to area 2.
E) none of the above