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Agave, Six Feet Under, Globe, Silk, Sotto Sotto and Zocalo are all restaurants in Atlanta. In this monopolistic market, economic profit would encourage ________, which decreases the ________ for each firm's meals.

a. entry; supply

b. exit; demand

c. exit; supply

d. entry; demand

User Ladii
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Answer:

In a monopolistic market, economic profit would encourage entry of new firms, which decreases the demand for each firm’s meals. So, the correct answer would be d. entry; demand.

User Vinyuri
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