In monopolistic competition,the entry of new firms will cause all of the following to happen except

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In monopolistic competition, the entry of new firms will increase the number of competitors and therefore the firm's demand curve will shift to the left as it now has to compete with more firms. This will lead to a decrease in the firm's market share and profits. The industry cost curves will not shift to the left because the new firms will also bring in their own costs which will affect the industry cost curves. Long-run economic profits will be zero because firms will enter until economic profits are driven down to zero. However, the industry marginal cost curve will not shift to the right as the entry of new firms will not affect the cost of production for existing firms.

In Monopolistic Competition,the Entry of New Firms Will Cause All