If a monopolistically competitive firm is earning profits in the short run:
A) the entry of competing firms will shift the firm's demand to the right.
B) the entry of competing firms will shift the firm's demand to the left.
C) the entry of competing firms will cause price to drop, but not affect the firm's demand curve.
D) the entry of competing firms will cause price to rise, but not affect the firm's demand curve.
Correct Answer:
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