If firms in a monopolistically competitive industry experience short-run losses
A. firms increase prices further, until they make at least a normal return.
B. some firms exit the industry, causing the demand curves for the remaining firms to shift to the right until they earn a normal profit.
C. some firms would like to exit the industry but find they cannot.
D. firms increase advertising spending to increase demand, until they make at least a normal return.
Answer: B
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