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24 September, 03:39

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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  1. 24 September, 04:05
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    C. Demand for the existing firms' output will become more inelastic
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