As new firms enter a monopolistically competitive industry, the demand curve facing each existing firm:
A) will shift to the left, but the firm's market share is not affected
B) will shift to the right and become elastic because there are now more substitutes for its product
C) will shift to the left, and the firm's market share falls
D) will not be affected because the new firms do not produce a perfect substitute for its product
Correct Answer:
Verified
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