When new firms enter a monopolistically competitive industry,the market

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When new firms enter a monopolistically competitive industry, the supply curve shifts to the right. This is because there are now more firms producing similar but slightly differentiated products, increasing the overall supply in the market. This leads to a decrease in price as firms compete for consumers, but the extent of the price decrease depends on the elasticity of demand for the products.

When New Firms Enter a Monopolistically Competitive Industry,the Market