If a monopolistically competitive firm is earning profits in the short run: Question 34 options:athe entry of competing firms will shift the firm's demand to the right.bthe entry of competing firms will shift the firm's demand to the left.cthe entry of competing firms will cause price to drop, but not affect the firm's demand curve.dthe entry of competing firms will cause price to rise, but not affect the firm's demand curve.

Monopolistically competitive is a form of market structure in which many number of manufacturers…

Answered: If a monopolistically competitive firm…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 13P

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If a monopolistically competitive firm is earning profits in the short run:

Question 34 options:

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.

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