Figure 12-7 Figure 12-7 Illustrates the Cost Curves of a Perfectly Competitive

Figure 12-7

Figure 12-7 illustrates the cost curves of a perfectly competitive firm.
-Refer to Figure 12-7.If the market price is P₃, the firm

A) will break even.
B) will make a profit.
C) will earn enough revenue to cover its variable costs but not its fixed costs.
D) will produce a quantity of Q₁.