Figure: Marginal Costs 3 P P P MC $8 MC $8 $8 6 6 6 MC 4 A 4 2 2 2 0 20 40 60 80 Q (bushels) 0 20 40 60 80 Q (bushels) 0 20 40 60 80 Q (bushels) Firm A Firm B Firm C The three firms represent total production in the industry and have achieved profit maximization. Initially, only firm A and firm C are operating at a price of $4, selling 60 bushels, and earning a profit. If firm B enters the industry, what do you expect will happen? O a. The price will remain the same, and firm B will add an additional 60 bushels to supply. O b. Firm A and firm C will go out of business because firm B's costs are lower. O c. Supply in the industry will increase, driving down the price. Firms will produce where P = MCA = MCB = MCC. O d. None of the firms will produce because when firm B enters, the price will be too low to earn a profit