An industry has many firms, no barriers to entry or exit, and products that are differentiated using nonprice competition. Based on this information, which of the following is most likely in this industry in the long run?
Firms will exit this industry.
Firms will enter this industry.
Firms in this industry will earn normal profits.
Firms in this industry will earn earn economic profits.
Firms in this industry may earn economic profits or suffer economic losses.