Which of the following sequences is most likely to happen when a market is profitable in the short-run?
a. News about profitability spreads; more firms enter the market; supply increases; equilibrium price decreases.
b. News about profitability spreads; equilibrium price decreases; more firms enter the market; supply increases.
c. More firms enter the market; news about profitability spreads; equilibrium price decreases; supply increases.
d. More firms enter the market; supply increases; equilibrium price decreases; news about profitability spreads.
a. News about profitability spreads; more firms enter the market; supply increases; equilibrium price decreases.
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