When perfectly competitive firms are earning shortrun econom
When perfectly competitive firms are earning short-run economic profits, all of these happen, EXCEPT:
supply increases.
market prices fall.
the number of firms in the industry will fall.
firms are attracted to the industry by the profits.
Solution
the number of firms in the industry will fall.
When firms are earning positive profit then new firms will enter into the market rather than exit. So, number of firms in the industry will not fall. All other options are correct because profit attract new firms in the market, supply increases and as a result price falls.

