If the market for donuts is perfectly competitive and all firms are producing a quantity that generates no deadweight loss and the cost per unit is minimized, which of the following is most likely true?
Choose 1 answer:
(A) Firms are earning economic profits and more firms will enter this industry.
(B) The market supply will shift right
(c) The market is in long-run equilibrium.
(D) Firms are making economic losses and more firms will exit this industry.
(E) Firms will decrease their average total costs if they increase output
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