Suppose a typical firm in a competitive industry has the following data in the short run price $5000 output 1 million units ATC $5300 AVC-$4750 What wil likely happen in the long run?
A. In the long, run the industry will contract because firma are suffering losses B. In the long run the industry will expand because firms are earning economic profits C. The size of the industry will remain the same in the long run D. Consumers will avoid this industry because firms are suffering losses E. There is not enough information to formulate an answer