Answer to Question #56425 in Microeconomics for Afy

Question

A typical firm in a perfectly competitive market made positive economics profit last period. What do you expect will happen this period to
a. the number of firms in the market
b. the market demand curve
c. the market supply curve
d. market price
e. market output
f. the firm’s output
g. the firm’s profit

Answer 1

A typical firm in a perfectly competitive market made positive economics profit last period. What do you expect will happen this period to
a. the number of firms in the market will rise.
b. the market demand curve will not change.
c. the market supply curve will shift to the right.
d. market price will decrease.
e. market output will increase.
f. the firm’s output will not change.
g. the firm’s profit will decrease.