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Diane operates her landscaping company in a monopolistic competition structure. This past year, Diane earned a large profit as well as the other firms that service the same marketplace.

In the long-run you would expect

A

Diane to continue to make an economic profit.

B

firms to collude to gain the largest profit possible for all firms.

C

other firms to enter causing Diane to earn a normal profit.

D

other firms to exit causing Diane's profits to increase.

E

other firms to enter causing Diane to incur losses.

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