Which of the Following Is True

Multiple Choice

Which of the following is true?

A) When firms in a price-taker market are earning zero economic profit, they will shut down.
B) When firms in a price-taker market are earning positive economic profits, new firms will enter the industry causing the market price to fall until the firms in the industry are earning only zero economic profit.
C) When firms in a price-taker market are earning economic losses, some firms will exit the industry causing the market price to rise until the remaining firms are earning zero economic profit.
D) Both b and c are true.