The monopolistically competitive market shown in exhibit


Question: The monopolistically competitive market shown in Exhibit will, in the long run,

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a. attract new producers into the market, which will shift the demand faced by incumbent firms to the right.

b. attract new producers into the market, which will shift the demand faced by incumbent firms to the left.

c. cause producers to exit the market, which will shift the demand faced by incumbent firms to the right.

d. cause producers to exit the market, which will shift the demand faced by incumbent firms to the left.

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Microeconomics: The monopolistically competitive market shown in exhibit
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