Assume the firms in a monopolistically competitive industry initially are earning positive economic profits. Which of the following will not occur over time? A. The firms' economic profits will be reduced

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asked Jan 20, 2021 60.5k views

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Assume the firms in a monopolistically competitive industry initially are earning positive economic profits. Which of the following will not occur over time?

A. The firms' economic profits will be reduced
B. New firms will enter
C. Demand for the existing firms' output will become more inelastic
D. The number of substitutes available in the industry will increase

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Shadymoses asked

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Answer:

C. Demand for the existing firms' output will become more inelastic

Wren answered Jan 24, 2021

by Wren

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