1.If a typical firm in a perfectly competitive industry is incurring losses, then

a.some firms will exit in the long run causing market supply to decrease and market price to rise increasing profits for the remaining firms.

b.some firms will enter in the long run causing market supply to increase and market price to rise increasing profit for all firms.

c.some firms will exit in the long run causing market supply to decrease and market price to fall increasing losses for the remaining firms.

d.all firms will continue to lose money.