In the Reclining Chair Industry (Which Is Perfectly Competitive), Two

Multiple Choice

In the reclining chair industry (which is perfectly competitive) , two different technologies of production exist.These technologies exhibit the following total cost functions:
C1(Q) = 500 + 560Q - 40Q2 + Q3
C2(Q) = 600 + 280Q - 20Q2+ Q3
Due to foreign competition, the market price of reclining chairs has fallen to $170.In the short run, firms using technology 1

A) and firms using technology 2 will remain in business.
B) will remain in business and firms using technology 2 will shut down.
C) will shut down and firms using technology 2 will remain in business.
D) and firms using technology 2 will shut down.
E) More information is needed to make a judgment.