choose the correct answer from the following choices, and then select the submit answer button. If the graph is representative of a free-entry market, what behavior can be expected? A line graph with the price on the vertical axis and the quantity on the horizontal axis. There are two lines shown. There is a linear downward-sloping line labeled initial firm demand and a U-shaped line labeled average cost. The initial firm demand curve lies below the absolute minimum of the average cost. Existing firms will exit the market. Incorrect: New firms will enter the market. New firms will enter the market. No firms will enter or exit the market. Incorrect: Existing firms will merge to raise the demand curve. Existing firms will merge to raise the demand curve