Entry of new firms into a monopolistically competitive market causes a(n)

Question

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The entry of new firms into a monopolistically competitive market increases the number of competitors, which leads to a decrease in the existing firms' demand curves. With more firms offering similar products, customers will have more choices, and the existing firms' market share will decrease. This can also lead to lower prices and lower profits for existing firms, as they will have to compete with the new entrants.

Entry of New Firms into a Monopolistically Competitive Market Causes