In a Perfectly Competitive Industry, the Equilibrium Price Is $56

Multiple Choice

In a perfectly competitive industry, the equilibrium price is $56 and the minimum average total cost of the industry's firms is $40. If this is a constant-cost industry, we can expect that in the long run, firms will _____ the market, shifting the industry's short-run supply curve _____.

A) enter; outward until the minimum average total cost rises to $56
B) enter; outward until the new equilibrium price is $40
C) enter; inward until firms are making positive profit
D) exit; inward until firms are breaking even