As a result of the economic profit earned by the first video rental outlets,
A)existing firms were able to successfully lobby the government for patent protection
B)competitors were attracted to the industry, and their entry reduced economic profit
C)demand dried up
D)Blockbuster saw an opportunity to take over the industry
E)competitors were discouraged from entering the industry

Question

Quizplus · Accepted Answer

The economic profit earned by the first video rental outlets attracted competitors to the industry, leading to increased competition and a reduction in economic profit. This phenomenon is known as the entry of rivals.

As a Result of the Economic Profit Earned by the First