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Sara is a dot-com entrepreneur who has established a Web site at which people can design and buy rings. Sara pays $500 a week for

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Sara is a dot-com entrepreneur who has established a Web site at which people can design and buy rings. Sara pays $500 a week for a Web server and Internet connection. She pays the firm that makes the rings $40 a ring. She has no other costs. The table shows the demand schedule for Sara's rings. Do you expect other firms to enter the Web ring business and compete with Sara? What happens to the demand for Sara's rings in the long run? What happens to Sara's economic profit in the long run? . . . Other firms enter the Web ring business and compete with Sara. In the long run, the demand for Sara's rings A. will; decreases O B. will not; increases O C. will not; decreases O D. will; increases In the long run, Sara's economic profit is $Price Quantity (dollars per ring) (rings per week) O 100 20 80 40 60 60 40 80 20 100 0

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