?Suppose a perfectly competitive firm and industry is in long-run equilibrium and the firm earns an economic profit in the short run. Which of the following is likely to occur in the long run?
a. ?The market supply curve will shift to the right, and the market price will decrease.
b. ?The market supply curve will shift to the left, and the market price will increase.
c. ?The firm will continue to earn economic profit.
d. ?There will be an increase in the amount of economic profit earned by the firm.
e. ?Industry output will decrease.
Answer: a. ?The market supply curve will shift to the right, and the market price will decrease.
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