When a new firm decides to enter a perfectly competitive market:
A) the short-run market supply curve shifts right
B) demand will rise
C) the short-run market supply curve shifts left
D) existing firms will force prices to increase
Correct Answer:
Verified
Q125: When new firms have an incentive to
Q133: When firms already in a competitive market
Q141: If all incumbent firms and all potential
Q145: When all firms and potential firms in
Q148: In a perfectly competitive market, the process
Q149: The entry and exit decisions of firms
Q150: A profit-maximising firm in a competitive market
Q151: The exit of existing firms from a
Q156: In long-run equilibrium of a competitive market,
Q159: The entry of new firms into a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents