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When Firms in Monopolistic Competition Are Making an Economic Profit

Question 260

Multiple Choice

When firms in monopolistic competition are making an economic profit, firms will


A) enter the industry, and demand will increase for the original firms.
B) exit the industry, and demand will increase for the firms that remain.
C) exit the industry, and demand will decrease for the firms that remain.
D) enter the industry, and demand will decrease for the original firms.

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