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Business, 14.04.2020 17:46 awsomelife123

Why can a firm in monopolistic competition make an economic profit only in the short run? When firms in monopolistic competition are making positive economic profit in the short run, . A. a surplus arises in the market, firms cut production, demand decreases, and the price falls B. new firms enter, and the demand for the good produced by each firm decreases until price equals average variable cost C. each firm increases production, the quantity demanded increases, and the price falls D. new firms enter, and the demand for the good produced by each firm decreases until price equals average total cost

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Why can a firm in monopolistic competition make an economic profit only in the short run? When firms...
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