Assume that the market for corn is perfectly competitive. Currently, firms growing corn are generating losses. In the long run, we can expect
A. new firms to enter, causing the market price of corn to decrease.
B. some firms to exit, causing the market price of corn to increase.
C. some firms to exit, causing the market price of corn to decrease.
D. new firms to enter, causing the market price of corn to increase.
Answer: B
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