When a New Firm Enters a Monopolistically Competitive Market, the Individual

question 337

Multiple Choice

When a new firm enters a monopolistically competitive market, the individual demand curves faced by all existing firms in that market will

• A)shift to the left.
• B)shift to the right.
• C)shift in a direction that is unpredictable without further information.
• D)remain unchanged. It is the supply curve that will shift.

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Definitions:

Fraction

A mathematical expression representing the division of one whole number by another, not resulting in a whole number.

Roman Numeral

A numeral system originating in ancient Rome, using combinations of letters from the Latin alphabet (I, V, X, L, C, D, M) to signify values.

Whole Number

A numerical value without fractions or decimals, often used to count discrete objects.

Fraction

A mathematical expression representing the division of one integer by another, typically used to denote a part of a whole.