Use Figure 8

Use Figure 8.1, which represents the situation faced by a monopolist, to answer the following questions.

-For the firm in Figure 8.1, the profit-maximizing loss-minimizing) price and level of output are:

A) P₂ and Q₂.
B) P₁ and Q₁.
C) P₄ and Q₁.
D) P₃ and Q₁.