Question
Consider an (almost) perfectly competitive market: the only difference is that different firms have different cost curves (no two firms have the same cost curve).
Consider an (almost) perfectly competitive market: the only difference is that different firms have different cost curves (no two firms have the same cost curve). Suppose firm A is in the market in the long-run equilibrium and making zero profit. Suppose there the demand curve shifts to the right. In the new long-run equilibrium,
A. Firm A makes strictly positive profits.
B. Firm A exits the market.
C. Firm A makes zero profits.
D. Firm A has higher costs than every other firm in the market.
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