-Refer to the above figure. Which panel shows a possible short-run equilibrium for monopolistic competition, but is not also a long-run equilibrium?

Question

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Panel A shows a possible short-run equilibrium for monopolistic competition, but is not also a long-run equilibrium because in the long run, new firms will enter the market, driving down prices and profits until the industry reaches long-run equilibrium.

-Refer to the Above Figure