Suppose a firm in a perfectly competitive market is earning
normal profits and there is an increase in demand. In the short
run, the firm earns A. an economic profit as prices rise. In the
long run, new firms will enter and prices will rise. B. an
economic profit as prices fall. In the long run, new firms will
enter and prices will rise. C. an economic profit as prices rise.
In the long run, new firms will enter and...