Suppose firms in a monopolistically competitive industry are currently earning short-run economic profit. In the long run, the demand curve facing each individual firm is likely to:
a. shift to the left and become flatter.
b. shift to the left and become steeper.
c. shift to the right and become flatter.
d. shift to the right and become steeper.
e. remain unchanged.
Answer: a. shift to the left and become flatter.
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