When new firms have an incentive to enter a competitive market, their entry will
a. increase the price of the product.
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.
b
Economics
You might also like to view...
The above figure shows the market for hamburger. Which panel shows the effect of a drought in "cattle country"?
A) Figure A B) Figure B C) Figure C D) Figure D
Economics
Proponents of passive policy making believe that
A) the existence of time lags makes active policy ineffective or even procyclical. B) time lags do not exist so the economy will adjust too rapidly with active policy. C) government should not follow any particular policy. D) fiscal policy is always better than monetary policy in stabilizing the economy.
Economics