Which of the Following Statements Concerning a Monopolistically Competitive Industry

question 167

Multiple Choice

Which of the following statements concerning a monopolistically competitive industry is correct?

• A)If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right.
• B)If there are short-run economic profits, firms will enter the industry and the demand curves of existing firms will shift to the right.
• C)If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the left.
• D)If there are short-run economic profits, firms will leave the industry and the demand curves of the remaining firms will shift to the right.

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