Use the Following to Answer Question

Multiple Choice

Use the following to answer question:
-(Figure: The Profit-Maximizing Firm in the Short Run) Use Figure: The Profit-Maximizing Firm in the Short Run.If the market price is less than P₂,the firm will _____ in the short run.

A) produce q₁ and break even
B) produce q₁ and incur a loss smaller than total fixed cost
C) shut down
D) produce q₃ and make a profit