Refer to Figure 15.2. In this monopolistically competitive industry, in the long run

A) firms will enter until all firms break even economically.
B) firms will suffer economic losses profits.
C) demand for the product will increase so that profits are increased.
D) product supply will decrease so prices will go up.

Monopolistically Competitive

Refers to a market structure where many companies sell similar but not identical products, allowing them to have some control over their prices.

Economic Profits

Profits that exceed the opportunity costs of a firm, calculated as total revenues minus both explicit and implicit costs.

Long Run

A period during which all factors of production and costs are variable, and firms can enter or exit the industry.