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When firms exit the monopolistically competitive market, the demand for remaining firms' products increase because remaining firms' production capacity can serve wider markets. those firms
When firms exit the monopolistically competitive market, the demand for remaining firms' products increase because remaining firms' production capacity can serve wider markets. those firms that are left become monopolies, and consumers have no choice but to buy from them. O cost of production fall as there is not as much demand for input goods. consumers who were buying form the exiting firms add to the demand
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