Exhibit 10-1 a Monopolistic Competitive Firm

Exhibit 10-1 A monopolistic competitive firm

If all firms in the industry are the same as the monopolistic competitive firm shown in this Exhibit 10-1, firms in the long run will:

A) leave the industry.
B) earn positive economic profits.
C) experience less competition because firms will exit the industry.
D) experience competition from new firms that enter the industry.