If demand increases in a perfectly competitive market, firms will likely:

Name: If demand increases in a perfectly competitive market, firms will likely:
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In a perfectly competitive market, an increase in demand leads to higher prices and profits in the short run, attracting new firms to enter the market to capture some of these profits. This is because perfectly competitive markets have low barriers to entry, allowing new firms to enter easily when they see an opportunity to make profits.

If Demand Increases in a Perfectly Competitive Market, Firms Will