In a monopolistically competitive scenario,as more firms enter into the industry,the long run demand curve for most firms will tend to become:
A) more inelastic.
B) vertical.
C) horizontal.
D) more elastic.

Question

Quizplus · Accepted Answer

As more firms enter into the industry, the competitive pressure increases and customers have more options to choose from. This leads to a more elastic demand curve for most firms as customers can easily switch to substitute products offered by new firms.

In a Monopolistically Competitive Scenario,as More Firms Enter into the Industry,the