In the diagram for a purely competitive producer, the firm will produce at a loss at all prices: 4. D. between P2 and P3.
Loss prices for a purely competitive producer
In a perfect competition, there are a large number of buyers and sellers, each with a negligible influence on the market price. The product is homogeneous, and this means that no one seller's product is significantly different from another.
From the diagram illustrated for a purely competitive producer, we can expect the firm to produce at a loss when the total costs are greater than the total revenue. In the diagram, this is represented as values between P2 and P3.