Answer:
some firms will exit the industry
Explanation:
if the minimum possible price of constructing homes = $50 per square foot, it means that the marginal cost of building a square foot is $50. If the selling price is less than the marginal cost, then some firms will inevitably have to exit the industry. No firm can remain at an industry when its marginal costs are higher than its marginal revenue.
As supply lowers, the equilibrium price should increase, and some firms might return to the industry.
