Which of the following are correct in the context of monopolistic competition? (A) monopolistic competitive firms may earn economic profits or incur losses in the short-run. (B) the long-run equilibrium position of a monopolistically competitive producer is far more efficient than that of pure competition. (C) the firms may strive to increase the demand for its product through product development and advertising. (D) consumers benefit from the wide variety of product choices that monopolistic competition provides.
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