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When Firms in Monopolistic Competition Incur an Economic Loss, Some

Question 45

Multiple Choice

When firms in monopolistic competition incur an economic loss, some firms will


A) enter the industry, and demand will become more elastic for the original firms.
B) enter the industry and produce more products.
C) exit the industry, and demand will increase for the firms that remain.
D) exit the industry and other firms will enter.
E) exit the industry, and demand will decrease for the firms that remain.

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