When firms in monopolistic competition make an economic profit,

Question

Accepted Answer

firms enter the industry, and demand decreases for the firms that were originally in the industry.

Answer

firms enter the industry, which increases demand for the product of the firms originally in the market.

Answer

firms exit the industry, and demand increases for the products of the firms that remain.

Answer

eventually the market will become a monopoly.

Answer

firms exit the industry, and demand decreases for the firms that remain in the industry.

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