The statement that in the long run the demand curve will shift to the left until price equals average total cost and economic profit increases is not true.
Option: (I)
<u>Explanation:</u>
In monopolistic competition, the demand for the commodity that is manufactured often remains constant, or at instances, increases as the manufacturer is the only player producing the commodity in that particular segment, or of that particular brand, or of that particular quality.
These manufacturers often sell their products at costs more than the marginal costs by taking advantage of the monopolistic competition in place.
1:c 2:a 3: "in less than six years the odds have changed from 9 to 1 in our favor to 8 to 5 against us." AND "The truth of this statement is becoming terrifyingly clear as we see this country each day losing on every front"
