As firms enter a perfectly competitive market, the price
A) falls and the existing firms' economic profits do not change.
B) rises and the existing firms' economic profits decrease.
C) falls and the existing firms' economic profits decrease.
D) falls and the existing firms' economic losses do not change.
C
You might also like to view...
If there is a rise in the price level, there is a(n) ________ movement along the AS curve because there is ________ in the quantity of real GDP supplied
A) upward; a decrease B) downward; an increase C) upward; no change D) upward; an increase E) downward; a decrease
The various ways that vertical relationships can evade regulation include
a. tying the sale of a regulated good to a customer's choice of an unregulated good b. unbundling regulated and unregulated goods c. excluding sellers of competing unregulated goods d. insuring tax rates are uniform across jurisdictions