In monopolistic competition, short-run positive economic profits of firms in the market will cause the market demand to expand.

Name: In monopolistic competition, short-run positive economic profits of firms in the market will cause the market demand to expand.
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In monopolistic competition, short-run positive economic profits attract new firms to the market, increasing competition and reducing the profits of existing firms, rather than expanding market demand.

In Monopolistic Competition, Short-Run Positive Economic Profits of Firms in the Market