If the market for products produced by firms in a monopolistically competitive industry becomes ________,then there will be ________ firms and each firm will produce ________ output and charge a ________ price.

Question

Quizplus · Accepted Answer

In a monopolistically competitive market, if the market becomes smaller, there will be fewer firms because some will exit due to decreased demand. Each remaining firm will produce less output and charge a higher price due to reduced competition and economies of scale.

If the Market for Products Produced by Firms in a Monopolistically