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Kryger [21]
3 years ago
7

Assume that the market is originally in equilibrium. Now suppose that this product gains a sudden popularity among consumers. Ho

w will this sudden popularity affect the profit of an individual firm in this market in the short run?
Business
1 answer:
zubka84 [21]3 years ago
6 0

Answer:

The profit of an individual firm increases from zero to a positive value.

Explanation:

The market demand will increase (shift right) as a result of the product's newfound popularity. The market price will increase in the short run, and as a result, the firm’s economic profit will rise from 0 to a positive value in the short run.

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When investors give computer instructions to sell automatically to avoid potential losses if their stock price dips to a certain point, it is called program trading.

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