Suppose the firms in a monopolistically competitive market, Ask an Expert

Economics

Suppose the firms in a monopolistically competitive market are earning positive economic profits. What will happen to move the market to its long-run equilibrium?

The firms' demand curves will become less elastic.

The demand curves faced by firms in the market will shift to the right.

More close substitutes will appear in the market.

Some firms will exit the market if they can't cover all of their fixed and variable costs.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91697092

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