If a Typical Monopolistically Competitive Firm Is Incurring Short-Run Losses

question 239

Multiple Choice

If a typical monopolistically competitive firm is incurring short-run losses, then

• A)other more competitive firms will enter the market.
• B)as some firms leave, the remaining firms will experience an increase in the demand for their products.
• C)as some firms leave, the demand for the products of the remaining firms will become more elastic.
• D)the industry will eventually cease to exist.

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