What Will Happen in the Long Run If Firms in Monopolistic

Multiple Choice

What will happen in the long run if firms in monopolistic competition incur economic loss?

A) Firms will continue producing and endure the losses.
B) Firms will leave the industry until the remaining firms make positive economic profit.
C) Firms will ask the government for financial aid.
D) Firms will leave the industry until the remaining firms make zero economic profit.
E) The level of investment in this industry will increase to boost the economy.