Multiple Choice
If firms in monopolistic competition are making economic profits, then
A) new rivals enter the industry and the demand for any seller's good increases.
B) the market demand becomes more inelastic.
C) new rivals enter the industry and the demand for any seller's good decreases.
D) the industry is in long-run equilibrium.
E) they can expect to earn the profits indefinitely.
Correct Answer:
Verified
Correct Answer:
Verified
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