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

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Quizplus · Accepted Answer

In a perfectly competitive market, there are already many producers supplying the same product at a given price. Therefore, if a new producer enters the market, the supply in the market increases, which may put downward pressure on the price. However, since the market is already in a state of perfect competition, this pressure on price will likely offset any increase in supply, leading to no significant change in price. Thus, the correct choice is C, where the price in the market does not change.

Assume a Market Is Perfectly Competitive