Under perfect competition,if an industry is characterized by positive economic profits in the short run
A)firms will leave the market in the long run and the short-run supply curve will shift outward.
B)firms will enter the market in the long run and the short-run supply curve will shift outward.
C)firms will enter the market in the long run and the short-run supply curve will shift inward.
D)firms will leave the market in the long run and the short-run supply curve will shift inward.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, positive economic profits attract new firms to enter the market in the long run, increasing the industry's output and causing the short-run supply curve to shift outward. This process continues until economic profits are driven to zero.

Under Perfect Competition,if an Industry Is Characterized by Positive Economic