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What Does the Free Entry and Exit of Firms in a Monopolistically

Question 46

Multiple Choice

What does the free entry and exit of firms in a monopolistically competitive market guarantee


A) Both economic profits and economic losses can persist into the long run.
B) Both economic profits and economic losses disappear in the long run.
C) Both economic profits and economic losses increase in the long run.
D) Both economic profits and economic losses decrease in the long run.

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