Suppose Industry a Is Realizing Substantial Economic Profits

Multiple Choice

Suppose industry A is realizing substantial economic profits.Which of the following best describes the adjustment process which would bring about a new equilibrium?

A) Firms will leave the industry, output will fall, and product price will rise.
B) Firms will enter the industry, output will rise, and product price will rise.
C) Firms will leave the industry, output will rise, and product price will fall.
D) Firms will enter the industry, output will rise, and product price will fall.