1. Refer to the graph that depicts Joe's family restaurant in a perfectly competitive market. If price is P3, the profit-maximizing output is:
   1. Q3
   2. Q3 and Q4
   3. Q4
   4. None of the above

The curve labeled M C intersects the curve labeled A T C at a point (Q3, P2) and the curve labeled A V C at a point (Q2, P1). The values P1, P2, P3, and P4 are marked on the vertical axis and the values Q1, Q2, Q3, and Q4 are marked on the horizontal axis