New firms will necessarily enter a monopolistically competitive market when price exceeds:

Name: New firms will necessarily enter a monopolistically competitive market when price exceeds:
Brand: Quizplus
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Question

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New firms will enter a monopolistically competitive market when the existing firms are making a profit, which occurs when price exceeds average total cost. This indicates that firms are able to cover all their costs and still make a profit, attracting new entrants to the market.

New Firms Will Necessarily Enter a Monopolistically Competitive Market When