When firms enter a market, the supply increases, price _______, and profits _______.

Name: When firms enter a market, the supply increases, price _______, and profits _______.
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When firms enter a market, the supply increases, leading to a decrease in price due to higher competition. As prices fall, the profits for individual firms also decrease because the market becomes more competitive, reducing the price they can charge for their products.

When Firms Enter a Market, the Supply Increases, Price _______