Business, 26.05.2021 01:00 smeeden

What effect does the entry of new firms have on the economic profits of existing firms? When new firms enter a monopolistically competitive market, the economic profits of existing firms A. will because their demand curves will become more . B. will increase because their average cost of production will decrease. C. will remain unchanged because they sell differentiated products. D. will decrease because their demand curves will shift to the left. E. will decrease because their demand curves will shift to the right.

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What effect does the entry of new firms have on the economic profits of existing firms? When new fi...