Business, 23.11.2019 02:31 emilyblaxton
When firms in monopolistic competition are making a positive economic profit in the short run,
a. each firm increases production, the quantity demanded increases, and the price falls
b. a surplus arises in the market, firms cut production, demand decreases, and the price falls
c. new firms enter, and the demand for the goods produced by each firm decreases until the price equals average variable cost
d. new firms enter, and the demand for the goods produced by each firm decreases until the price equals average total cost
Answers: 1
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When firms in monopolistic competition are making a positive economic profit in the short run,
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