The Figure Given Below Shows the Revenue and Cost Curves

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-Under perfect competition, entry of new firms into the market in the long run tends to:

A) raise the aggregate supply.
B) raise the level of profit of the existing firms.
C) raise the aggregate demand for goods.
D) reduce the degree of competitiveness in the market.
E) reduce the market power of the existing firms.