Assume a Purely Competitive Increasing-Cost Industry Is in Long-Run Equilibrium

Multiple Choice

Assume a purely competitive increasing-cost industry is in long-run equilibrium. If a decline in demand occurs, firms will

A) leave the industry, price will fall, and quantity produced will rise.
B) enter the industry and price and quantity will both rise.
C) leave the industry and price and quantity will both rise.
D) leave the industry, price will fall, and quantity produced will fall.