As new firms enter a monopolistically competitive market,there is more product variety and lower prices.

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In a monopolistically competitive market, firms differentiate their products to attract customers, leading to more product variety. The competition among firms also puts pressure on prices, leading to lower prices for consumers. As new firms enter the market, this competition and product differentiation are likely to increase, resulting in even more variety and lower prices.

As New Firms Enter a Monopolistically Competitive Market,there Is More