Figure 12-9 Figure 12-9 Shows Cost and Demand Curves

Figure 12-9 Figure 12-9 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.
-Refer to Figure 12-9. If the firm chose to produce at price P₁, the firm would

A) lose an amount equal to its fixed cost.
B) lose an amount more than fixed cost.
C) lose an amount less than fixed cost.
D) break even.