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If firms in a monopolistically competitive market are earning economic profits, which of the following scenarios best reflects the change a representative firm experiences as
If firms in a monopolistically competitive market are earning economic profits, which of the following scenarios best reflects the change a representative firm experiences as the market adjusts to its long-run equilibrium?
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Demand decreases and becomes less elastic.
Demand increases and becomes more elastic
Demand increases and becomes less elastic
Demand decreases and becomes more elastic.
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