In monopolistically competitive markets,economic losses ____,and ____ shifts the demand curve of the remaining firms to the ____.

Question

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In monopolistically competitive markets, firms may initially earn economic profits but eventually face competition from new firms entering the market. This leads to a decrease in demand for each individual firm, causing economic losses for some firms. Firms that incur losses may choose to exit the market, which would shift the demand curve for the remaining firms to the right. This means that the remaining firms will have higher prices and sell more output, which may increase their profits. Therefore, economic losses signal some remaining firms to exit, and the exit shifts the demand curve of the remaining firms to the right.

In Monopolistically Competitive Markets,economic Losses ____,And ____ Shifts the Demand

In Monopolistically Competitive Markets,economic Losses ,And Shifts the Demand