Assume a market is perfectly competitive.When a new producer enters the market,

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In a perfectly competitive market, the market price is determined by the intersection of the supply and demand curves. If a new producer enters the market, the supply curve shifts to the right, leading to a temporary excess supply, and the market price decreases to achieve a new equilibrium. However, in the long run, other firms may exit the market due to the decreased price, causing the supply curve to shift back to the left and the market price to stabilize at the original level. Therefore, the entry of a new producer does not cause a permanent change in the market price in a perfectly competitive market.

Assume a Market Is Perfectly Competitive