Assume a market has unit elastic demand, such that total expenditureE=P*Q, wherePis price andQis total industry quantity.Also, assume there areNidentical firms with fixed (sunk) costsFand constant marginal costc.If the industry Lerner Index can be writtenLI = A/N, whereAis some parameter, then doubling fixed costs will

a.

increase the number of firms in equilibrium by more than double.

b.

decrease the number of firms in equilibrium by less than half.

c.

decrease the number of firms in equilibrium by more than half.

d.

increase the number of firms in equilibrium by less than double.