The figure represents the cost structure for a perfectly MC + competitive firm with its average total cost (ATC) curve, average variable (AVC) curve, and marginal cost (MC) curve. Suppose the market price is $16.00 per unit. Will firms enter or 16.00 .".. exit the industry in the long run? If market price is $16.00, then firms will AVC the market in the long run. Price and cost What effect will firms entering have on the market price? When firms enter, O A. the marginal cost of production will decrease, decreasing price. O B. the average total cost of production will decrease, decreasing price. O C. market supply will decrease, decreasing price. Quantity . . . O D. market supply will increase, decreasing price. O E. market demand will decrease, decreasing price