If profits are positive in the short run in a perfectly competitive industry, which of the following would you not expect to happen as the market moves to the long run?
A. Each firm will decrease output.
B. Profits of each firm will fall.
C. The market demand curve will remain unchanged.
D. Total market output will fall.
E. The market price will fall.
F. Firms will enter the industry.
G. Each firm’s individual demand curve will shift down.
Answer: C. The market demand curve will remain unchanged.