What is the effect of entry on a monopolistically competitive firm's demand curve?
What is the effect of entry on a monopolistically competitive firm's demand curve?
Homework Answers
ANSWER:
When new firm enters in the monopolistically competitive market,
demand curve for the other firms shift to the left. because when
new enters some costumers shifts to the new enter firm and smaller
quantity will be demanded at any given price and that is also
results in the lower price.
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What is the effect of entry on a monopolistically competitive
firm's demand curve?
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