In perfectly competitive markets,economic profits

A) send a signal to other producers to enter the market.
B) will decrease the industry supply curve.
C) could also be called explicit costs.
D) will increase the industry demand curve.

Economic Profits

The surplus remaining after total costs (including both explicit and implicit costs) are subtracted from total revenue; often indicates the firm is outperforming the average in its industry.

Industry Supply Curve

A graphical representation showing the relationship between the price of a commodity and the quantity supplied by all producers in the market.

Industry Demand Curve

A graphical representation that shows the relationship between the price of a good or service and the total quantity demanded by all consumers in the industry.