The Entry of New Firms into a Monopolistically Competitive Industry

question 161

Multiple Choice

The entry of new firms into a monopolistically competitive industry causes the

• A) market demand curve to shift right.
• B) market demand curve to shift left.
• C) existing firms' demand curve to shift right.
• D) existing firms' demand curve to shift left.
• E) market supply curve to shift left.

---

Definitions:

Cash Received

The total amount of money received by a company during a specific period, including revenues, investments, and other sources of income.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered but not yet paid for.

Investing Section

A component of the cash flow statement that reports the purchase and sale of long-term investments and property, plant, and equipment.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into service.