The diagram illustrates a profit-maximising firm’s position in a perfectly competitive industry. Which analysis of this position is correct?
- Aprofits in short run: supernormal; number of firms in the industry in the long run: decrease
- Bprofits in short run: supernormal; number of firms in the industry in the long run: increase
- Cprofits in short run: normal; number of firms in the industry in the long run: remain the same
- Dprofits in short run: subnormal; number of firms in the industry in the long run: decrease