Multiple Choice

-Sue's Sea Shells by the Sea Shore is a perfectly competitive firm selling sea shells at the market price of $2 per dozen. Sue's Sea Shells by the Sea Shore has fixed costs of $40 per day and a variable cost schedule shown in the table above. Based on this information, we can expect the number of firms in the sea shell market to
A) increase.
B) decrease.
C) remain constant.
D) It is impossible to say.
Correct Answer:
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