Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Prices, Cost Curves, and Profits
-(Figure: Prices, Cost Curves, and Profits) Look at the figure Prices, Cost Curves, and Profits. If the price is P₁ and the firm decides to produce at output Q₁, then the firm earns:

A) a loss equal to (ba) × Q_1.
B) a loss equal to (ca) × Q_1.
C) a loss equal to (bc) × Q₁.
D) zero.