Figure 14-1 The Graph Below Depicts the Cost Structure for a Firm

Figure 14-1
The graph below depicts the cost structure for a firm in a competitive market.

-Refer to Figure 14-1.When price rises from P₃ to P₄,the firm finds that

A) fixed costs are lower at a production level of Q₄.
B) it can earn a positive profit by increasing production to Q₄.
C) profit is still maximized at a production level of Q₃.
D) average revenue exceeds marginal revenue at a production level of Q₄.