crazyskater6503 crazyskater6503
  • 23-08-2018
  • Business
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If firms in a monopolistically competitive market are earning negative economic profits, it is likely that:

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shagojyo
shagojyo shagojyo
  • 24-08-2018

It is likely that: B. firms will exit the market if firms in a monopolistically competitive market are earning negative economic profits.

Firms will exit the market since there is no point in staying in a monopolistically competitive market where you’d be earning negative economic profits, as this means a loss of income, as well as the loss of investment.

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