Martha is one producer in the perfectly competitive jelly industry. Last year, Martha and all of her competitors found themselves earning economic profits. If there is free entry and exit, what do you expect will happen to the amount of output Martha will produce and the amount of profit she will have?
Martha is one producer in the perfectly competitive jelly industry. Last year, Martha and all of her competitors found themselves earning economic profits. If there is free entry and exit, what do you expect will happen to the amount of output Martha willprofit she will have?O Martha’s output will decrease, but her profits will increase.Martha’s output and profits will both decrease.O Martha’s output will increase but her profits will decrease.O Martha’s output and profits will both increase.
