Use the table below to answer the following question.
Table 13.2.1

-Refer to Table 13.2.1.Sara is a dot.com entrepreneur who sells sweatshirts.She pays $1,000 a week for her Web server and Internet connection.She pays the firm that makes the sweatshirts $20 a sweatshirt.Sara has no other costs.The table sets out the demand schedule for Sara's sweatshirts.Other firms ________ enter the Web sweatshirt business and compete with Sara.In the long run,the demand for Sara's sweatshirts ________ and her economic profit ________.

Question

Use the table below to answer the following question.
Table 13.2.1
 
-Refer to Table 13.2.1.Sara is a dot.com entrepreneur who sells sweatshirts.She pays $1,000 a week for her Web server and Internet connection.She pays the firm that makes the sweatshirts $20 a sweatshirt.Sara has no other costs.The table sets out the demand schedule for Sara's sweatshirts.Other firms ________ enter the Web sweatshirt business and compete with Sara.In the long run,the demand for Sara's sweatshirts ________ and her economic profit ________.

Quizplus · Accepted Answer

In a competitive market, other firms will enter the market if they see an opportunity for profit, which increases competition. This increased competition typically leads to a decrease in demand for any single firm's product as consumers have more options, and in the long run, economic profits tend to fall to zero due to this competition.

Use the Table Below to Answer the Following Question