If new firms enter a perfectly competitive industry seeking economic profit and begin producing goods, which of the following will occur?
A) The market supply curve will shift leftward with movement along an unchanged demand curve.
B) The market supply curve will shift rightward with movement along an unchanged demand curve.
C) The market supply and demand curves will both shift to the left.
D) The market supply and demand curves will both shift to the right.
E) There will be movement down and to the right along a fixed supply curve.
Correct Answer:
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