Assume the firms in a perfectly competitive industry are initially in

Assume the firms in a perfectly competitive industry are initially in long-run equilibrium and the cost of labor increases. In the short run, this will cause firms in the industry to:

A) reduce output and incur a loss.
B) reduce output and earn a positive economic profit.
C) increase output and incur a loss.
D) increase output and earn a positive economic profit.

ANSWER

A