Bonzo's success in the Easter Basket business has attracted more characters into the Easter Basket industry.If Easter Basket making is a constant cost industry,Bonzo
A) and the new entrants can all expect to be enjoying his current level of profits.
B) can expect his profits to be driven down to zero as new competitors push the price down.
C) can expect to have to shutdown his operation in the face of new competition.
D) will have to increase his price to make up for the loss of any sales to new competitors.
Correct Answer:
Verified
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