The Following Graph Shows the Demand Curve for a Good

The following graph shows the demand curve for a good and the long run average cost curve for a typical firm in this market.
If the government does not intervene in the market, then

A) there will be many firms in this market, all of whom will take the market price as given and produce where price equals marginal cost
B) there will only be 1 firm in this market, and they will produce where marginal revenue equals marginal cost
C) there will only be 1 firm in this market, and they will take the price as given and produce where price equals marginal cost
D) no firms will enter this market

Correct Answer:

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