Exhibit 12-3 Refer to Exhibit 12-3

Exhibit 12-3 Refer to Exhibit 12-3.Graph B exhibits a price-taking firm:

A) which will lose money when the market price equals $4.90.
B) which will make an economic profit when the market price equals $4.90.
C) which will break even when the market price equals $4.90.
D) which will shut down when the market price equals $4.90.