THE ECONOMIC PROFIT IS NOT $0.

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 B. will not; increases C. will not; decreases D. will; increases In the long run, Sara's economic profit is $ \begin{tabular}{cc} \hline Price (dollars per ring) & Quantity (rings per week) \\ \hline 0 & 100 \\ 20 & 80 \\ 40 & 60 \\ 60 & 40 \\ 80 & 20 \\ 100 & 0 \\ \hline \end{tabular} 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 B. will not; increases C. will not; decreases D. will; increases In the long run, Sara's economic profit is $ \begin{tabular}{cc} \hline Price (dollars per ring) & Quantity (rings per week) \\ \hline 0 & 100 \\ 20 & 80 \\ 40 & 60 \\ 60 & 40 \\ 80 & 20 \\ 100 & 0 \\ \hline \end{tabular}