If firms are earning economic profit in a monopolistically competitive

If firms are earning economic profit in a monopolistically competitive market, which of the following is most likely to happen in the long run?

A) Some firms will leave the market.
B) Firms will join together to keep others from entering.
C) New firms will enter the market, thereby eliminating the economic profit.
D) Firms will continue to earn economic profit.

 

ANSWER

C

 

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