Use the Table Below to Answer the Following Question

Use the table below to answer the following question.
Table 14.2.1

-Refer to Table 14.2.1. Sara is a dot.com entrepreneur who sells sweatshirts. She pays $1,000 a week for her Web server and Internet connection. She pays the firm that makes the sweatshirts $20 a sweatshirt. Sara has no other costs. The table sets out the demand schedule for Sara's sweatshirts. Other firms ________ enter the Web sweatshirt business and compete with Sara. In the long run, the demand for Sara's sweatshirts ________ and her economic profit ________.

A) will; decreases; falls to zero
B) will not; decreases; falls to zero
C) will; increases; increases
D) will not; increases; increases
E) will; increases; falls to zero

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free