In the short run, under perfect competition, more firms enter the market to produce and earn profits since entrepreneurs see how profitable some of the firms are. What will happen over the long run? (a) More firms will continue to enter and earn higher profits since the demand for that good is rising and consumers will view that good as price inelastic. (b) More firms that are entering into the market at a later stage will find that their costs of production are higher and the market price for that good rises with it. Consumers are viewing that good as price inelastic. (c) More firms that are entering into the market at a later stage will find that their costs of production are higher and the supply of that good rises. Consumers will view that good as perfectly price inelastic and the combination of lower prices and higher costs will force many of these firms, especially, when they entered into the market very late, are very likely to shut down their operations and exit the market. (d) None of the above.