Profit-maximizing firms enter a competitive market when existing firms in that market have

Question

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Profit-maximizing firms are more likely to enter a market when existing firms are making a profit, which occurs when the price (or average revenue) is higher than the average total costs. This condition indicates that firms can cover all their costs and have room for profit, making the market attractive for new entrants.

Profit-Maximizing Firms Enter a Competitive Market When Existing Firms in That