If firms in a monopolistically competitive industry are operating with economic losses, over time we would see

A. some firms exiting the industry, causing the market supply curve to shift to the left, raising price.
B. some firms exiting the industry, causing the demand curves of the remaining firms to shift to the right.
C. firms alter their advertising rates until they made at least normal profits.
D. the firms working together to increase price and everyone's profitability.


Answer: B

Economics

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