Use the Figure to Answer the Following Question(s)

Multiple Choice

Use the figure to answer the following question(s) .
Figure 10-2

If the cost and demand conditions of this competitive price-searcher firm depicted in Figure 10-2 are representative of the market, what will happen in the future?

A) Firms will go out of business, and the market price will rise.
B) The current market price will tend to persist into the future.
C) New firms will enter the market, and demand facing this firm will decline.
D) The firms in this industry probably will collude in order to increase their profitability.