Which of the following would be most likely if firms in a competitive price-searcher market were earning economic profit?
A) Production inefficiencies would persist until the profit was eliminated.
B) Firms would decrease their rate of output in the short run, causing a decline in profitability in the market.
C) New firms would enter the market, resulting in fewer sales by existing firms.
D) All firms in the market would continue to produce at their current levels and continue to charge the same price.
Correct Answer:
Verified
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