Suppose That the Market for Haircuts in a Community Is

Multiple Choice

Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for haircuts. In the short run, we expect that the typical firm is likely to begin:

A) earning an economic profit.
B) incurring an economic loss.
C) experiencing no change in its economic profit.
D) experiencing neither an economic profit nor an economic loss.