If a competitive firm routinely earns a larger profit than the "normal profit" for its industry,

A. the firm's owners are likely to withdraw from the industry in order to retire early.
B. the firm will continue to earn its "normal profits" far into the future.
C. new firms are likely to enter the industry, pushing up the prevailing market price.
D. new firms are likely to enter the industry, depressing the prevailing market price.


Answer: D

Economics

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