If Firms in Monopolistic Competition Are Making Economic Profits,then

question 219

Multiple Choice

If firms in monopolistic competition are making economic profits,then

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

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