Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: The Marginal Decision Rule
-(Figure: Marginal Decision Rule) Look at the figure The Marginal Decision Rule. If P₁ is the market price and if this firm is maximizing profit, it should produce:

A) where MR > MC.
B) at quantity q₂.
C) at quantity q₁, where MR > MC.
D) a quantity greater than q₁ but less than q₂.