MC 20 LRAC 16 Price and costs (dollars per pizza) 12 MR 8 o 100 200 300 400 Quantity (pizzas per day) The figure above shows the marginal revenue and long-run cost curves for a perfectly competitive firm. All other firms in the industry have identical curves. Which of the following statements is TRUE? Select one: O a. The firm's average cost exceeds the price. O b. The firm is earning economic profit. O c. Over time, firms will enter this industry. d. None of the above is true