Normal Profit.

Firm is producing an output Q₂, where MC = MR at price (P₂) Its total cost (AC * Q ) equals its total revenue (P*Q)  In this case the firm breaks even (or makes normal profit).

A competitive firm incurring losses.

At price P₂ = $30 per unit the firm cannot avoid incurring losses, because that price is below the minimum average cost represented by P₃ = $40. At the profit maximizing output q* the price P₂ is less than an average cost, so that line segment AB measures the average loss form production where P= MC, which represent, AC - P (profit/loss per unit). The firm could minimize it's losses by producing at q*, with losses ABCD being incurred, however if the firm were to shut down, it would incur even greater losses equal to the fixed costs of production CBFE

ü  Note that at any price lower than P₂ the business cannot survive and will have to close down because MR will not be sufficient to cover the MC.