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If a firm with market power is not making enough profit (in equilibrium): a

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If a firm with market power is not making enough profit (in equilibrium):

a. it will lower price, thereby increasing total revenue because demand is elastic.

b. it will raise price, thereby increasing total revenue because demand is inelastic.

c. it will exit the industry in the long run if economic profit is negative.

d. it will expand sales until it reaches the unit elastic point on demand.