Use the Following to Answer Question(s)

Multiple Choice

Use the following to answer question(s) :
Exhibit: Profit Maximizing

-(Exhibit: Profit Maximizing) The exhibit shows cost curves for a firm operating in a perfectly competitive market. If the market price is P₃, the firm will produce quantity _______ and _______ in the short run.

A) q₂; make a profit
B) q₁; break even
C) q₂; incur a loss
D) q₄; incur a loss