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

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.)

If firms in a perfectly competitive industry are earning economic profits (select all that apply),  We expect firms in this industry to earn smaller economic profits in the future.   We expect to see higher cost firms exit this industry to seek greater return on their capital in other markets.   We expect new producers to stop entering the market when market price equals minimum average total cost.   Consumers' willingness to pay above market rates will create inefficiency in long-run production.

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

The market price becomes competitive due to firms' competition but only when there are many firms in the market.

If firms in a competitive market are making positive economic profits, you would expect firms to __________ the market, causing the market __________ curve to shift to the __________.Group of answer choicesenter; demand; leftleave; supply; leftenter; supply; rightenter; demand; rightenter; supply; left