Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: The Profit-Maximizing Firm in the Short Run
-(Figure: The Profit-Maximizing Firm in the Short Run) Look at the figure The Profit-Maximizing Firm in the Short Run. If the market price is P₄:

A) firms will leave the industry and the price will fall in the long run.
B) there will be economic profits and firms will enter the industry in the long run.
C) the market supply curve will shift to the left and price will fall in the long run.
D) the firm will produce q₄.