The graph below depicts the cost structure for a firm in a competitive market. Figure 9-13 Refer to Figure 9-13. When price falls from P₃ to P₁, the firm finds that A) fixed cost is higher at a production level of Q₁ than it is at Q₃. B) it should produce Q₁ units of output. C) it should produce Q₃ units of output. D) it should shut down immediately.

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The Answer of The graph below depicts the cost structure for a firm in a competitive market. Figure 9-13 Refer to Figure 9-13. When price falls from P₃ to P₁, the firm finds that A) fixed cost is higher at a production level of Q₁ than it is at Q₃. B) it should produce Q₁ units of output. C) it should produce Q₃ units of output. D) it should shut down immediately.

The Graph Below Depicts the Cost Structure for a Firm