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. At price P₄, the firm would

A) lose an amount equal to its fixed cost.
B) make a profit.
C) lose an amount less than fixed cost.
D) shut down.