Suppose there are many independent restaurants in your city, each of which is earning economic profits. According to the theory of monopolistic competition, Question 35 options: existing restaurants will engage in non-price competition and maintain their profits in the long run. existing restaurants will cooperate and maximize their joint profits. existing restaurants will cooperate and restrict entry of new firms. existing restaurants will expand until they reach the quantity associated with minimum long-run average cost. new restaurants will enter this market until each firm is earning zero profits