-The figure above shows a monopolistically competitive firm in the short run. During the transition to the long run, the demand curve will shift _______ and the MR curve will shift _______.

Question

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In the long run, new firms enter the market if existing firms are making profits, increasing competition and reducing demand for individual firms. This causes both the demand curve and the marginal revenue (MR) curve for a monopolistically competitive firm to shift leftward.

-The Figure Above Shows a Monopolistically Competitive Firm in the Short