Refer to the graph shown. Suppose that at a price of $5.00, firm A is willing and able to supply 4 units and firm B is willing and able to supply 4 units. Which of the following statements is then true?
A. Curve S1 shows the quantity supplied of firm A and firm B combined.
B. The addition of firm B to the market causes a movement upward and to the right along S1.
C. The addition of firm B to the market causes a movement upward and to the right along S0.
D. Curve S0 shows the quantity supplied of firm A and firm B combined.
Answer: A
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