Figure 1 The graph below depicts the cost structure for a firm in a competitive market. Refer to Figure 1 . When price rises from P 2 to P 3 , the firm finds that
A.
marginal cost exceeds marginal revenue at a production level of Q 2 .
B.
if it produces at output level Q 3 it will earn a positive profit.
C.
expanding output to Q 4 would leave the firm with losses.
D.
it could increase profits by lowering output from Q 3 to Q 2 .