Suppose That Competitive Price-Searcher Firms Are Experiencing Losses

Suppose that competitive price-searcher firms are experiencing losses. In the transition from this initial situation to a long-run equilibrium,

A) the number of firms in the market decreases.
B) each existing firm experiences a decrease in demand for its product.
C) each firm experiences an upward shift to its marginal cost and average total cost curves.
D) each existing firm's average total cost falls to bring economic profit back to zero.