As firms exit from a monopolistically competitive industry in the long run, the remaining firms' profits will begin to rise.

Name: As firms exit from a monopolistically competitive industry in the long run, the remaining firms' profits will begin to rise.
Brand: Quizplus
Rating: 4.7 (50 reviews)

Question

Quizplus · Accepted Answer

As firms exit a monopolistically competitive industry, the demand for the products of the remaining firms increases, leading to higher sales and potentially higher profits, assuming costs do not increase proportionately.

As Firms Exit from a Monopolistically Competitive Industry in the Long