Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium. subsequently, an increase in population increases the demand for haircuts. in the short run, the typical firm is likely to: earn an economic profit. incur an economic loss. have no change in its economic profit. have neither an economic profit nor an economic loss.

Subsequently, an increase in population increases the demand for haircuts. in the short run, the typical firm is likely to "earn an economic profit."

Economic profit refers to the profit between the income a firm earns from deals and the company's aggregate opportunity costs.  

Economic profit incorporates the opportunity costs an organization loses or gains by settling on a choice to seek after one road towards income, along these lines going by an alternate open door which additionally may have delivered income. A firm can have an expansive bookkeeping benefit, yet no economic profit.