Suppose notebooks are produced by a competitive constant-cost industry.Which of the following must cause Nanna's Notebooks to exit the industry in the long run?
A) Nanna's is notified of a rent increase,but her competitors' rents are unchanged.
B) A fire destroys half of Nanna's inventory.
C) A photographer wins a $10,000 judgment from a lawsuit charging that Nanna's used his photos on notebook covers without permission.
D) The price of cardboard used in notebook production rises.
Correct Answer:
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