Which of the following is one market trend that results when a monopolistically competitive firm starts earning profits well above its costs?
AThe firm would become an oligopolistic firm because it has effectively eliminated the competition and now dominates the market alone.
BThe firm would try to lure 100 percent of customers by flooding the market with defective products.
CFierce competition would encourage rivals to create new ways to differentiate their products and lure customers to them.
DThe firm would eventually go out of business because demand would decrease.
AThe firm would become an oligopolistic firm because it has effectively eliminated the competition and now dominates the market alone.
BThe firm would try to lure 100 percent of customers by flooding the market with defective products.
CFierce competition would encourage rivals to create new ways to differentiate their products and lure customers to them.
DThe firm would eventually go out of business because demand would decrease.