When new firms enter a perfectly competitive market,
a. demand increases.
b. the short-run market supply curve shifts right.
c. the short-run market supply curve shifts left.
d. existing firms will increase prices to keep the new firms from entering.
b
Economics
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Explain what economic efficiency is. How does a price system lead to economic efficiency?
What will be an ideal response?
Economics
Life-cycle saving is saving:
A. for protection against unexpected setbacks, such as the loss of a job or a medical emergency. B. to pay life-insurance premiums. C. for the purpose of leaving an inheritance. D. to meet long-term objectives, such as retirement, college attendance, or the purchase of a home.
Economics