-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 due to the presence of economic profits, causing the demand curve faced by the existing firm to shift leftward. Consequently, the marginal revenue (MR) curve also shifts leftward as it is derived from the demand curve.

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