Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: The Restaurant Market
-(Figure: The Restaurant Market) The figure The Restaurant Market shows curves facing a typical restaurant. Assume that many firms, differentiated products, and easy entry and exit characterize the restaurant market. For the restaurant shown here, the profit-maximizing price is:

A) P₁.
B) P₂.
C) P₃.
D) Not enough information is given to answer the question.