What will entry into a market by new firms do

Question

Quizplus · Accepted Answer

Entry into the market by new firms will increase the supply of the good, leading to more competition and potentially lower prices. It may also put pressure on existing firms to improve their products and pricing strategies to stay competitive. It is unlikely to increase profits or prices for existing firms, or increase their costs unless they are forced to spend more on marketing or research and development to compete with the new entrants.

What Will Entry into a Market by New Firms Do