Figure 7-6 Shows a Firm in a Perfectly Competitive Market

Figure 7-6 shows a firm in a perfectly competitive market in the long run. Which of the following is most likely to happen in the given market?Figure 7-6​

A) New firms would be likely to enter, increasing the market price.
B) New firms would be likely to enter, decreasing the market price.
C) Existing firms would be likely to exit, increasing the market price.
D) Existing firms would be likely to exit, decreasing the market price.
E) Firms would neither enter nor exit, and the market price would remain unchanged.