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2b) If the price of the product in a perfectly competitive market increases what happens to the level of profit in the short run? What happens to the number of individual firms in the market and to the level of profit in the long run? Fully explain your answer.

2b) If the price of the product in a perfectly competitive market increases what happens to the level of profit in the short run? What happens to the number of individual firms in the market and to the level of profit in the long run? Fully explain your answer.

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2b) If the price of the product in a perfectly competitive market increases what happens to the level of profit in the short run? What happens to the number of individual firms in the market and to the level of profit in the long run? Fully explain your answer.
Transcribed Image Text:2b) If the price of the product in a perfectly competitive market increases what happens to the level of profit in the short run? What happens to the number of individual firms in the market and to the level of profit in the long run? Fully explain your answer.
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