The VCR Manufacturing Business Is Perfectly Competitive

Multiple Choice

The VCR manufacturing business is perfectly competitive.Suppose that currently, firms that manufacture VCRs utilize either technology 1 or technology 2, whose cost functions are
TC1(Q) = 1,120 - 60Q + Q2
TC2(Q) = 300 - 20Q + Q2
In the long run, assuming no new manufacturing technologies,what will happen in this industry?

A) Firms utilizing technology 1 and firms utilizing technology 2 will stay in business.
B) Firms utilizing technology 1 will shut down, but firms utilizing technology 2 will stay in business.
C) Firms utilizing technology 1 will stay in business, but firms utilizing technology 2 will shut down.
D) Firms utilizing technology 1 and firms utilizing technology 2 will shut down.
E) None of the above.