When a new firm enters a market, it:
A.) Pushes the equilibrium price upward.
B.) Reduces the profits of existing firms.
C.) Shifts the market supply curve to the left.
D.) Shifts the market demand curve to the left.
B.) Reduces the profits of existing firms.
Economics
You might also like to view...
According to Keynes' theory of money demand, a low interest rate increases the likelihood of a capital ________ and ______ the interest elasticity of money demand
a. gain on bonds; reduces. b. gain on money; increases. c. loss on bonds; reduces. d. loss on money; increases. e. none of the above.
Economics
"Near monies" are: a. included in the M1 definition of the money supply
b. highly liquid assets that are close substitutes for money. c. stocks, bonds, and real estate. d. U.S. notes and Federal Reserve notes.
Economics