If additional firms enter a monopolistically competitive industry,the demand facing a typical firm increases.

Name: If additional firms enter a monopolistically competitive industry,the demand facing a typical firm increases.
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

When additional firms enter a monopolistically competitive industry, it increases the competition in the market, which leads to a decrease in the demand facing a typical firm. This is because consumers now have more choices and alternatives. Therefore, the statement is false.

If Additional Firms Enter a Monopolistically Competitive Industry,the Demand Facing