If Dorothy's Doughnuts Is a Perfectly Competitive Firm and Is

Multiple Choice

If Dorothy's Doughnuts is a perfectly competitive firm and is currently incurring economic losses of $500,

A) firms will enter the market.
B) firms will exit the market.
C) individuals will demand more doughnuts.
D) individuals will demand fewer doughnuts.
E) the market supply curve will shift to the right.