As firms enter a monopolistically competitive industry, the existing firms' demand curves will:

Name: As firms enter a monopolistically competitive industry, the existing firms' demand curves will:
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In a monopolistically competitive market, as more firms enter the industry, the existing firms face more competition. This leads to a decrease in demand for each existing firm's product (shift inward) and makes the demand curve more elastic because consumers have more substitutes available.

As Firms Enter a Monopolistically Competitive Industry, the Existing Firms