The market for candles is perfectly competitive and is currently in equilibrium.What will happen if candles are later linked to more houses catching on fire?
A) In the short run,firms will experience economic profits,but in the long run,firms will leave the market,bringing economic profits back down to zero.
B) In the short run,firms will experience economic profits,but in the long run,firms will enter the market,bringing economic profits back down to zero.
C) In the short run,firms will incur economic losses,but in the long run,firms will leave the market,bringing economic profits back up to zero.
D) In the short run,firms will incur economic losses,but in the long run,firms will enter the market,bringing economic profits back up to zero.
E) In both the short run and the long run,firms will experience zero economic profits.
Correct Answer:
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