The fact that barriers to entry are low in competitive price-searcher markets means that if current firms are making economic losses,
A) these losses will remain in the long run because no firms can exit the market.
B) current firms will exit the market, causing the demand curves that face the remaining firms to increase.
C) new firms will enter the market, causing the demand curves that face the existing firms to decrease.
D) new firms will enter the market, causing no change in the demand curves that face the existing firms in the market.
Correct Answer:
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