Monopolitic Competition Demand Increase Short Run

   An increase in the popularity of coffee houses means that the typical coffee house finds its demand and marginal revenue curves shifting upward as shown to the right.

    Even though this shift looks like the same one we showed as a result of exit in the Introduction, its cause is very different. This shift is due to increased demand and takes place in the short run. Shifts due to exit only occur in the long run.

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