As new firms enter a competitive price-searcher market, it can be expected that
a. market price will increase.
b. the output of existing firms will increase.
c. profits of existing firms will increase.
d. market demand should decrease.
e. profits of existing firms will decrease
E
Economics
You might also like to view...
The classical model uses the assumption that
A) all wages and prices are flexible. B) interest rates are not flexible. C) monopoly is widespread in the economy. D) economic markets are fragile and have no tendency to move towards an equilibrium.
Economics
A change that increases real money demand relative to the real money supply causes
A) the LM curve to shift down and to the right. B) the LM curve to shift up and to the left. C) the IS curve to shift down and to the left. D) the IS curve to shift up and to the right.
Economics