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In a market characterized by monopolistic competition, how will new firms choose to engage this market?
Select the correct answer below:
Firms will enter the market to avoid losing economic profits that occur in perfect competition.
As long as the firms in the market are earning positive economic profits, new competitors will want to enter the market to earn those profits too.
As long as the firms in the market are earning positive economic profits, entry into the market is not possible.
As long as the firms in the market are losing economic profits, new competitors will continue to enter the market to try to earn what other firms lose.
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