Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: The Profit-Maximizing Firm in the Short Run
-(Figure: The Profit-Maximizing Firm in the Short Run) Look at the figure The Profit-Maximizing Firm in the Short Run. If the market price is P₄, the firm will produce quantity _____ and _____ in the short run.

A) q₁; break even
B) q₃; make a profit
C) q₄; break even
D) q₅; lose fixed costs