When firms enter a monopolistically competitive industry, the demand curves of the remaining firms in the industry

Question

Quizplus · Accepted Answer

When new firms enter a monopolistically competitive industry, they provide additional options for consumers, thereby reducing the demand for existing firms' products. This causes the demand curves of the remaining firms to shift to the left, as each firm now captures a smaller portion of the market share.

When Firms Enter a Monopolistically Competitive Industry, the Demand Curves