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Diya opens a cake shop in her locality. At the time, her cake shop is the only one in the locality and she manages to
Diya opens a cake shop in her locality. At the time, her cake shop is the only one in the locality and she manages to maximise her profits. After six months, several new cake shops are opened in the locality, each of which specialises in a cake of a different flavour. How does the entry of new cake shops affect Diya's cake shop if she still aims to maximise profits? Explain your answer using a graph that shows the change.
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