What happens to the demand curves of the existing firms when new ...

[Alygatorr01285]

What happens to the demand curves of the existing firms when new firms enter into a monopolistic competitive market?
 
  What will be an ideal response?

Question 2

Leisure time
 
  A) is less valuable to us than the wage we earn for working.
  B) has steadily decreased over the years.
  C) is not valued as part of GDP.
  D) is not an economic good.
  E) is included in GDP and has become an increasingly large part of GDP.

[frogdreck123456]

Answer to Question 1

The demand curves faced by the existing firms in a monopolistic competition shift to the left and become flatter when new firms enter the industry. This is because new firms take a portion of the market.

Answer to Question 2

C

[Alygatorr01285]

TYSM

[pratush dev]

Thanks for the timely response, appreciate it