-Refer to Figure 7-11

Multiple Choice

-Refer to Figure 7-11.Suppose the prevailing price is P₁ and the firm is currently producing its loss-minimising quantity.If the firm represented in the diagram continues to stay in business,in the long-run equilibrium

A) it will reduce its output to Q₀ and face a price of P₀.
B) it will continue to produce Q₁ but faces the higher price of P₂.
C) it will expand its output to Q₂ and face a price of P₂.
D) it will expand its output to Q₃ and face a price of P₁.