Multiple Choice
Which of the following will happen if some firms in a monopolistically competitive market incur losses in the short run and the market conditions are not expected to change?
A) The existing firms will continue production in the long run.
B) The demand for the goods produced by the firms will decrease.
C) New firms will enter the industry in the long run.
D) Some firms will exit the industry in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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