If economic profits exist in perfect competition, in the long run firms will enter because of easy entry, the _______ curve will shift to the right, and _______ will _______ .

Question

Quizplus · Accepted Answer

In perfect competition, firms can easily enter the market if economic profits exist in the long run. As new firms enter, the market supply curve will shift to the right, leading to an increase in output and a decrease in price. Therefore, choice A is the best answer as it correctly identifies the shift in the supply curve to the right, an increase in output, and a fall in price.

If Economic Profits Exist in Perfect Competition, in the Long