Determining the adjustment to long-run equilibrium

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Question: Suppose the firms in a monopolistically competitive market are incurring economic losses. During the adjustment to long-run equilibrium, which of the following will occur?

- The firms' demand curves will become more elastic.

- More close substitutes will appear in the market.

- The demand curves faced by firms that remain in the market will shift to the left.

- Some firms will exit the market if they can't cover all of their fixed and variable costs

Reference no: EM131774112

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