If the market represented by this graph has free entry and exit, what will be the firm demand curve in the short run if economic profit is positive? A line graph with the price on the vertical axis and the quantity on the horizontal axis. There are three lines: a U-shaped curve labeled average cost and two downward-sloping lines labeled firm demand 1 and 2. Firm demand 1 lies above the minimum of the average cost, while firm demand 2 is just touching the average cost curve, intersecting at point A. Points B and C are where firm demand 1 intersects the average cost, and point D is where firm demand 2 meets the vertical axis. firm demand 1 firm demand 2 neither firm demand curve the average cost curve