Which of the Following Will Not Happen as a Consequence

question 10

Multiple Choice

Which of the following will not happen as a consequence of a monopolistically competitive firm suffering economic losses in the short run?

• A) The firm's demand curve will shift to the right if it stays in business in the long run.
• B) The firm will exit the industry if it continues to suffer economic losses.
• C) The firm will break even if it stays in business in the long run.
• D) In the long run, the firm will be able to charge a price that is greater than its average total cost.

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