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