If a monopolistically competitive firm's demand curve is shifting to the left, it will stop shifting when:

Question

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In a monopolistically competitive market, firms face downward-sloping demand curves. The demand curve will stop shifting to the left when the firm's price equals its average total cost, which allows the firm to break even, earning zero economic profit in the long run. This is a characteristic equilibrium condition for firms in monopolistic competition.

If a Monopolistically Competitive Firm's Demand Curve Is Shifting to the Left