Figure 14-2 Price ATC MC AVC P Q122 Q3 QA Quantity | Refer to Figure 14-2. Which of the following statements best reflects the situation faced by the firm when price falls from P4 to P2? Select one: O a. Marginal revenue is lower than marginal cost at the previous level of output, so it decreases production. O b. Marginal revenue is higher than marginal cost at the previous level of output, so it increases production. O c. Average total cost is lower than at the previous level of output so it increases production. O d. The firm will earn profit equal to (P4 - P2) x 92