If a firm is making abnormal profits in the short run in monopolistic competition:
A) Some firms will leave the industry.
B) Some firms will enter the industry increasing costs and increasing demand.
C) Some firms will enter the industry shifting demand for the established firms' products to the left.
D) Some firms will enter the industry reducing the total supply in the market.
Correct Answer:
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Q1: In monopolistic competition:
A) There are a few
Q2: In monopolistic competition:
A) Products are homogeneous.
B) Products
Q3: In the short run firms in monopolistic
Q5: In the long run firms in monopolistic
Q6: Which is not one of Porter's five
Q7: Firms are more likely to make higher
Q8: Firms in monopolistic competition are productively and
Q9: There is no entry and exit of
Q10: Profit-maximizing firms in monopolistic competition produce where
Q11: Which of the following is associated with
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