As new firms enter a monopolistically competitive industry,the demand curve for an individual firm shifts to the right.

Question

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As new firms enter a monopolistically competitive industry, the demand curve for an individual firm actually shifts to the left because there are now more options for consumers to choose from. This increase in competition puts pressure on each firm to lower prices and/or improve their product differentiation to maintain or gain market share.

As New Firms Enter a Monopolistically Competitive Industry,the Demand Curve