Assume That Nike Is a Firm in Monopolistic Competition

Multiple Choice

Assume that Nike is a firm in monopolistic competition. If Nike is making an economic profit from its new cross-training shoe, over time the demand for these shoes

A) decreases as new firms enter the market.
B) does not change as new firms enter the market.
C) increases as new firms enter the market.
D) decreases as firms exit the market.
E) increases as firms exit the market.