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When Initially a Monopolistically Competitive Industry Earns Economic Profit, the Result

Question 177

Multiple Choice

When initially a monopolistically competitive industry earns economic profit, the result of competition among sellers is usually that:


A) the price of the product increases to monopoly level.
B) the price of the product quickly reaches the perfectly competitive level.
C) firms in the industry gain market share.
D) firms in the industry lose market share.

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