Other things being equal,as more firms enter a market,the market supply curve
A)Becomes more inelastic.
B)Shifts to the left.
C)Shifts to the right.
D)Intersects the demand curve at a higher price.

Question

Quizplus · Accepted Answer

As more firms enter a market, the supply of goods and services in that market increases, leading to a rightward shift in the market supply curve. This is because new firms introduce new products or services or increase the availability of existing ones, leading to a greater quantity supplied at every price level. As a result, consumers benefit from a greater variety of choices and potentially lower prices.

Other Things Being Equal,as More Firms Enter a Market,the Market