Business, 02.09.2021 20:10 mimithurmond03
Suppose that firms in a monopolistically competitive industry are making positive profits in the short run.
Choose the correct answers below to describe what will happen in this industry in the long run?
Since profits are greater than zero:
a- firms will enter
b- the number of firms will not change
c- firms will exit .
As this occurs, demand for each firm will:.
a- increase
b- stay the same
c- decrease .
Answers: 3
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Suppose that firms in a monopolistically competitive industry are making positive profits in the sho...
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