The monopolistically competitive firm shown in Exhibit 3 will, in the long run,
A) Attract new producers into the market, which will shift the demand faced by incumbent firms to the left.
B) Attract new producers into the market, which will shift the demand faced by incumbent firms to the right.
C) Cause producers to exit the market, which will shift the demand faced by incumbent firms to the left.
D) Cause producers to exit the market, which will shift the demand faced by incumbent firms to the right.
Correct Answer:
Verified
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