Refer to the Accompanying Figure to Answer the Following Questions

Multiple Choice

Refer to the accompanying figure to answer the following questions.
For a firm in a competitive market,the demand curve is horizontal,as shown.

-What will happen if the firm offers its product at a price slightly below price P_C?

A) The sales volume will plummet to essentially zero.
B) The number of units sold will slightly decrease.
C) The average total cost will slightly increase.
D) The firm will run into high barriers to exit from the market.
E) The firm will lose money on each unit sold.