Monopolistically competitive firms constantly develop new products in an effort to

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Monopolistically competitive firms operate in a market structure where there are multiple firms that sell differentiated products, which means that they offer products that are slightly different from each other. Therefore, they can increase the demand for their product by developing new products or making improvements to existing products to differentiate it further from their competitors. This can lead to increased consumer interest in their product and make their demand more inelastic. Additionally, it can also set them apart from their competitors, allowing them to charge higher prices and increase their profits.

Monopolistically Competitive Firms Constantly Develop New Products in an Effort