If competitive industry Z is making substantial economic profit, output will

A) fall in industry Z and firms will likely leave the market.
B) fall in all industries except industry Z.
C) expand in industry Z, as more resources will move to that industry.
D) expand in industry Z, but no new firms will enter the market.

Economic Profit

The difference between total revenues and total costs, taking both explicit and implicit costs into account, indicating the additional income over the opportunity cost of capital.

Industry Z

An unspecified sector of the economy, used as a placeholder to discuss economic concepts without specifying an industry.

Output Expansion

The increase in the production of goods or services by a firm or economy over time.