Refer to the Information Provided in Figure 15

question 163

Multiple Choice

Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. Figure 15.5
-Refer to Figure 15.5. In the long run in this monopolistically competitive industry,

• A) firms will leave the industry until each firm earns an economic profit.
• B) some firms will leave the industry until the remaining firms earn a normal profit.
• C) firms will enter the industry, which will increase the demand for the product.
• D) the government will subsidize the firms to eliminate any losses the firms incur.