If monopolistically competitive firms in an industry are making an economic profit, then:

A. firms will exit the industry and product demand will decrease for the firms that remain.
B. firms will exit the industry and product demand will increase for the firms that remain.
C. new firms will enter the industry and product demand will increase for the existing firms.
D. new firms will enter the industry and product demand will decrease for the existing firms.

Answer: D

Economics

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Economics