The existence of economic profits in a perfectly competitive industry

A) will signal resources to flow into that industry.
B) gives the investors in that industry a return on investment that just covers opportunity costs.
C) indicates an inelastic demand for the industry's products.
D) indicates that economic resources are being used efficiently in that industry.

Economic Profits

The financial gain obtained after subtracting both explicit and implicit costs from total revenues.

Perfectly Competitive Industry

An industry in which no single producer can influence the market price of the product because the conditions of perfect competition are met.

Economic Resources

Assets or inputs that contribute to the production of economic goods, including land, labor, capital, and entrepreneurship.