If Firms in Monopolistic Competition Are Making Economic Profits, Then

question 40

Multiple Choice

If firms in monopolistic competition are making economic profits, then

• A) new rivals enter the industry and the demand for any seller's good increases.
• B) the market demand becomes more inelastic.
• C) new rivals enter the industry and the demand for any seller's good decreases.
• D) the industry is in long-run equilibrium.
• E) they can expect to earn the profits indefinitely.

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