profit creates an incentive for other perfectly competitive firms to enter the market. (Use one word for the blank.)

Economic profit creates an incentive for other perfectly competitive firms to the market.

In the presence of profits, firms enter a perfectly competitive market until the market reaches the point at which the firms are generating a profit; then entry stops and the market settles into its -run equilibrium. (Make sure to put only one word in each blank.)

A(n) profit simply indicates that the firm is doing just as well as it would have if it had chosen to use its resources to produce a different product or to compete in a different industry.

Explain two ways a firm can increase its profit.

How do firms in a perfectly competitive market respond to economic profits in the market?Firms exit the marketThe number of firms remains the sameFirms enter the marketFirms increase the price of their product