graph shown. If the market price is $4, a perfectly competitive firm: A line graph plots price, costs versus output for three curves.A line graph plots price, costs in dollars, which range from 0 to 5 dollars with an increment of 1 dollar, against output for two descending curves, A V C and A T C, which intersect an ascending line labeled M C. Multiple Choice breaks even. earns a profit. incurs a loss but can still cover its variable costs and some of its fixed costs. incurs a loss and cannot cover its variable costs