Use the Figure Below to Answer the Following Questions

question 85

Multiple Choice

Use the figure below to answer the following questions. Figure 11.4.3
-Refer to Figure 11.4.3,which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market.Firms are

• A)making an economic profit,and some firms leave the market.Market supply decreases.
• B)making an economic profit,and some firms enter the market.Market supply increases.
• C)incurring an economic loss,and some firms leave the market.Market supply decreases.
• D)incurring an economic loss,and some firms enter the market.Market supply increases.
• E)incurring an economic loss,but since they are covering average variable cost,no one will exit the market in the long run.