D MR A. New firms are likely to enter the market decreasing prices and profits for all firms. B. New firms are likely to enter the market increasing prices and profits for all firms. C. Existing firms are likely to exit the market decreasing prices and profits for all remaining firms. D. Existing firms are likely to exit the market increasing prices and profits for all remaining firms. E. hone of the above

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 10P
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Question
三
EE
в IU A
1
Which of the following is likely to occur in the long run based on the
graph of the monopolistically competitive firm below?
MC
MR
A. New firms are likely to enter the market decreasing prices and
profits for all firms.
B. New firms are likely to enter the market increasing prices and
profits for all firms.
C. Existing firms are likely to exit the market decreasing prices
nd profits for all remaining firms.
D. Existing firms are likely to exit the market increasing prices and
profits for all remaining firms.
E. hone of the above
Transcribed Image Text:三 EE в IU A 1 Which of the following is likely to occur in the long run based on the graph of the monopolistically competitive firm below? MC MR A. New firms are likely to enter the market decreasing prices and profits for all firms. B. New firms are likely to enter the market increasing prices and profits for all firms. C. Existing firms are likely to exit the market decreasing prices nd profits for all remaining firms. D. Existing firms are likely to exit the market increasing prices and profits for all remaining firms. E. hone of the above
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