If the firms in a monopolistically competitive industry are earning short-run profit, which of the following is not likely to occur in the long run?

a. New firms will enter the industry.
b. New firms in the industry will draw customers away from existing firms.
c. Existing firms in the industry will face a decrease in demand.
d. Firms will continue to earn profit.
e. Firms will produce with some excess capacity.

D

Economics

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