Suppose the Cost of a CD Is $20

Suppose the cost of a CD is $20.As online retailers enter the market with new technology,the price of CDs ________,and traditional music stores find that ________.

A) decreases; their AVC exceeds the new lower price and they exit the industry
B) decreases; their ATC curve shifts lower and their profit increases
C) increases; they compete with online retailers at the new higher price
D) increases; their costs have risen due to the new technology
E) decreases; they compete with online retailers with higher profits