A new brewing company announces that it is releasing a new organic ale into the beer market.You can assume that the market for beer is characterised by monopolistic competition.According to the information provided, existing brewing companies are likely to experience what kind of externality as a result of the new ale?

Question

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The entry of a new brewing company into a market characterized by monopolistic competition typically leads to a business-stealing externality. This is because the new company's product (the organic ale) may attract customers away from existing companies, thereby reducing their sales and potentially their profits.

A New Brewing Company Announces That It Is Releasing a New