In the absence of barriers to entry, a typical firm is currently in long-run equilibrium. Assume there is an increase in the market demand for the good that the firm is producing. Which of the following will happen in the long run?
A
New firms will enter the market.
B
The market supply will decrease, but the quantity supplied will increase.
C
The firm will earn positive economic profit.
D
The firm's price will be greater than its average revenue.
E
The firm will continue to produce the same quantity of output.