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If a Monopolistically Competitive Firm Is Earning Profits in the Short

Question 70

Multiple Choice

If a monopolistically competitive firm is earning profits in the short run, then in the long run the behavior of competing firms


A) will cause the firm's supply curve to shift to the left.
B) will cause the firm's supply curve to shift to the right.
C) will cause the firm's demand curve to shift to the left.
D) will cause the firm's demand curve to shift to the right.

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