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

When the market for products produced by firms in a monopolistically competitive industry becomes larger, there will be more firms entering the market due to low barriers to entry and the potential for profits. Each of these firms will produce more output to meet the increased demand, and competition among the firms will lead to lower prices.

If the Market for Products Produced by Firms in a Monopolistically