You Operate a Monopolistically Competitive Firm and You Notice That

Multiple Choice

You operate a monopolistically competitive firm and you notice that your company is making an economic profit.Which of the following is most likely to happen?

A) Other firms in your industry will raise their prices.
B) Other firms will enter your industry and your demand curve will shift left.
C) Other firms will enter your industry and your demand curve will shift right.
D) Your firm will be forced to exit the industry.
E) Government regulators will investigate your firm for "excessive economic profit."