Multiple Choice
Refer to the following graph to answer the following questions:
-If all firms in a monopolistically competitive industry have demand and cost curves like those shown,we would expect,in the long run,that
A) all firms will leave the industry.
B) a certain percentage of existing firms will exit the industry.
C) firms in the industry will earn negative economic profits.
D) new firms will enter the industry.
E) enough new firms will enter the industry that it will become perfectly competitive.
Correct Answer:

Verified
Correct Answer:
Verified
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