When perfectly competitive firms make short-run eco- nomic profits, (A) firms in the industry will expand their scale of production in the short run. (B) firms in the industry will face competition from new entrants. (C) in the short run firms in the industry will reduce production to the minimum of the average total cost curve so that they can increase profits even more. (D) firms will expand production until price equals average total cost. (E) the market is in equilibrium. If a competitive firm's demand curve falls below its AVC curve, then the firm should (A) shut down. (B) operate in the short run but not in the long run. (C) set its price equal to marginal cost. (D) eliminate its fixed costs. (E) increase output until price exceeds AVC. Refer to the lobster market in Figure below The aggre- gate producer surplus is

Price ($/lobster) D S 10 8 6 4 2 D Quantity 0 1 2 W 4 5