What will happen in the long run if firms in monopolistic competition incur economic loss in the short run?

Question

Accepted Answer

Firms will leave the industry until the remaining firms make zero economic profit.

Answer

Firms will leave the industry until the remaining firms make positive economic profit.

Answer

Firms will ask the government for financial aid.

Answer

Firms will continue producing and endure the losses.

Answer

The level of investment in this industry will increase to boost the economy.

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