Option 1: (B), (A), (C), (D) -> This represents the correct chronological sequence of market adjustment under free entry and exit conditions. The process begins with (B) supernormal profits attracting new firms, followed by (A) rightward shift in supply curve as new firms enter the market, then (C) falling prices that eliminate supernormal profits due to increased supply, and finally (D) long-run equilibrium where only normal profits exist and no further entry occurs. This sequence demonstrates how perfect competition with free entry and exit leads markets to long-run equilibrium where economic profits are zero. -> correct