Use the figure below to answer the following questions.
Figure 13.2.3

Refer to Figure 13.2.3. Assume this firm faces demand curve D 2 . If this firm in monopolistic competition is maximizing economic profit,

Question

Use the figure below to answer the following questions.  
 Figure 13.2.3

Refer to Figure 13.2.3. Assume this firm faces demand curve  D 2 . If this firm in monopolistic competition is maximizing economic profit,

Answer

economic profit will fall over time.

Answer

there will be entry of rival firms into the industry.

Answer

the number of firms in the industry will remain constant.

Answer

rival firms will exit the industry.

Answer

it is producing the efficient quantity.

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