When new firms enter a perfectly competitive market, their entry will: a. increase the price of...
When new firms enter a perfectly competitive market, their entry
will:
a. increase the price of the produc
b. drive down profits of existing firms in the market
c. shift the market supply curve to the left
d. increase demand for the product
Homework Answers
"B"
This will reduce the price of the goods and reduce the profit that the existing firms in the market are making, the answer is "B. "
Add Answer to:
When new firms enter a perfectly competitive market, their entry
will:
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2. In a perfectly competitive market, there are initially economic profits. Firm entry causes the...
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Suppose that some firms in a perfectly competitive market are making positive economic profits. Which one...
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