If monopolistically competitive firms are making positive economic profits,then new firms would

Question

Quizplus · Accepted Answer

If monopolistically competitive firms are making positive economic profits, it indicates that there is excess demand in the industry, which creates an incentive for new firms to enter the industry to capture a share of these profits. Therefore, the best choice is E, and new firms would begin to enter the industry.

If Monopolistically Competitive Firms Are Making Positive Economic Profits,then New