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HACTEHA [7]
3 years ago
8

"Toby operates a small deli downtown. The deli industry is monopolistically competitive. If some delis leave the industry, Toby'

s ________ curve will shift ________."
Social Studies
1 answer:
Stels [109]3 years ago
8 0

The deli industry is monopolistically competitive. If some delis leave the industry, Toby's <u>demand</u> curve will shift <u>right</u>.

<u>Explanation</u>:

Monopolistic competition is similar to perfect competition in that firms in both market structure. In monopolistic competition the firms earn zero economic profits in the long run.

One of the best examples for monopolistic competition is gas station.

The demand curve is the graphical representation of the relationship between the cost of the goods or services and the quantity demand for the product for specific period of time.

Shifting of the demand curve to right shows that there is increase in demand for the product.

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