(Figure: The Perfectly Competitive Firm II) Use Figure: The Perfectly Competitive Firm II.If this firm's MR curve is MR₂,then this firm's optimal output is _____ units of output and its economic profit will be _____.

A) Q₁;positive
B) Q₂;negative
C) Q₃;positive
D) Q₄;negative

Economic Profit

The difference between total revenue and total cost, including both explicit and implicit costs, representing excess earnings over the opportunity cost of capital.

MR Curve

The marginal revenue curve, which shows how the revenue from selling one more unit of a good or service changes as the quantity sold changes.