Refer to the Graphs Shown, Which Depict a Perfectly Competitive

Refer to the graphs shown, which depict a perfectly competitive market and firm. If market demand is D₀, the:

A) firm shown in the graph will produce q₀, but all the firms in the market will produce a total of Q₀.
B) firm shown in the graph will produce q₁, but all the firms in the market will produce a total of Q₁.
C) output of the firm shown in the graph is the same as quantity supplied in the market.
D) firm is not producing at the output where profit is maximized.

Correct Answer:

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