Answer it if you are 100% sure and give proper explanation. Otherwise I'll downvote you.

$31.25 Cost, Price MC ATC P=MR $25 $20 $18.75 $12.5 $6.25 $0.0 Quantity 20 40 60 80 100 120 140 160 180 200 220 240 260 Reference the graph shown above, which illustrates a perfectly competitive firm. Based on the graph, what is most likely to happen: Prices in the market will increase because of an increase in demand. Prices in the market will decrease because of an increase in supply. Prices will most likely decline. This is because firms will enter the market because of the positive economic profits present in the market. Firms in a competitive market earn zero accounting profits in the long-run due to the fact that there are zero barriers to entry in a perfectly competitive market. O Prices will most likely decline. This is because firms will exit the market because of the negative economic profits present in the market. Firms in a competitive market earn zero economic profits in the long-run because of free entry and exit