8. As a result of the short run effect on the wool sock industry caused by global warming, the adjustment to long run equilibrium will consist of:
  1. firms entering the industry due to increased profits, shifting the marginal and average total cost curves out until profits are zero.
  2. firms leaving the industry due to losses, shifting the marginal and average total cost curves out until profits are zero.
  3. firms leaving the industry due to losses, shifting the industry supply curve out until prices fall enough to ensure zero profits.
  4. firms leaving the industry due to losses, shifting the industry supply curve back until prices rise enough to ensure zero profits.
  5. firms entering the industry due to increased profits, shifting the supply curve out until profits are zero.

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