Question

If firms in a competitive market are making positive economic profits, you would expect firms to ________ the market, causing the ________ curve to shift to the ________. Group of answer choices

Answer 1

Enter

Supply

Right

Step-by-step explanation:

A competitive market is when there are many buyers and sellers of homogenous goods and services. There are no restrictions to entry or exit of firms. In the long run, firms make zero economic profit.

If in the short run, if firms are making economic profit, in the long run, new firms would enter into the industry, this increases supply and drives economic profit to zero.

I hope my answer helps you