Refer to the Accompanying Figure to Answer the Following Questions

Multiple Choice

Refer to the accompanying figure to answer the following questions.

-If the price is $3,the firm is making

A) a loss and will exit the market.
B) a profit and will exit the market.
C) a loss and more firms will enter the market.
D) a profit and more firms will enter the market.
E) zero profits and the market is at long-run equilibrium.