单选题
If the market demand for a product increases in a competitive market, then in the short run the quantity supplied by an individual firm will: A. decrease and the firm will generate economic profits. B. increase and the firm will generate economic profits. C. increase and the firm will generate economic losses.
【正确答案】
B
【答案解析】If the market demand for a product increases in a competitive market, then both price and quantity supplied by an individual firm will increase and the firm will generate economic profits in the short run because price will be greater than average total costs.