Exhibit 10-2 a Monopolistic Competitive Firm

Multiple Choice

Exhibit 10-2 A monopolistic competitive firm
-If all firms in a monopolistic competitive industry have demand and cost curves like those shown in Exhibit 10-2, we would expect that in the long run:

A) all firms will leave the industry.
B) some firms will leave the industry.
C) firms in the industry earn zero economic profits.
D) a number of new firms will enter the industry.