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The Entry of New Firms into a Monopolistically Competitive Industry

Question 41

Multiple Choice

The entry of new firms into a monopolistically competitive industry


A) will cause existing firms' costs to decrease if existing firms experience economies of scale.
B) is likely to occur when firms are breaking even.
C) will cause existing firms' demand curves to change.
D) will cause existing firms to decrease advertising expenditures.
E) is limited by significant barriers to entry.

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