Suppose economic profits exist in perfect competition in the short run.Firms will enter in the long run because of easy entry,the short-run market _____ curve will shift to the right,and _____ will _____.

Question

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In perfect competition, if economic profits exist in the short run, new firms will enter the market in the long run due to easy entry. This increases the market supply, shifting the short-run market supply curve to the right, and as a result, output in the market will increase.

Suppose Economic Profits Exist in Perfect Competition in the Short