Refer to the graph shown. According to the graph, this monopolistically competitive industry is currently:
A. in long-run equilibrium, and so the number of firms will remain unchanged.
B. in short-run equilibrium with economic profit equal to zero.
C. not in long-run equilibrium, and we would expect some firms to exit this industry.
D. not in long-run equilibrium, and we would expect more firms to enter this industry.
Answer: D
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