The Motivating Force Behind an Increase in Supply in a Long-Run

Multiple Choice

The motivating force behind an increase in supply in a long-run adjustment to equilibrium is

A) lower prices.
B) economic profits that are present in the short run.
C) higher profit expectations among owners of firms in the industry, triggered by increased prices.
D) normal profits witnessed by individuals outside the industry that trigger entry.
E) the decreases in average cost that can be obtained through economies of scale.