2. Refer to Figure 2. What is the size of the deadweight loss prior to firm A entering the market and what happens to this deadweight loss after firm A does enter the market?
(A) The deadweight loss of area \(D\) is converted to consumer surplus.
(B) The deadweight loss of area \( C + D \) is converted to consumer surplus.
(C) The deadweight loss of area \(D\) is converted to producer surplus.
(D) The total deadweight loss is the area \( D + F \); \( D \) is converted to consumer surplus and \( F \) to producer surplus.

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