If firms in a monopolistically competitive market are incurring economic losses,which of the following scenarios would best describe the change remaining firms would face as the market adjusts to the long-run equilibrium?

Question

Quizplus · Accepted Answer

In the long run, firms incurring losses will exit the market, reducing supply and increasing demand for the remaining firms, moving them towards normal profit.

If Firms in a Monopolistically Competitive Market Are Incurring Economic