Refer to Figure 26

Refer to Figure 26.4 for a monopolistically competitive firm.If the firm currently faces Demand₂ and MR₂, then it will earn

A) A positive economic profit, and firms will enter the industry.
B) A positive economic profit, and firms will exit the industry.
C) A negative economic profit, and firms will exit the industry.
D) Zero economic profit, and neither entry nor exit will occur.