Question

If a monopolistically competitive firm is earning economic profits in the short run: Multiple Choice price will be driven down to minimum average total cost in the long run. these profits will be eliminated in the long run as new firms enter the industry. its output will increase in the long run. these profits will persist in the long run because of the firm's limited monopoly power.

Answer 1

these profits will be eliminated in the long run as new firms enter the industry.

Step-by-step explanation: