The entry of new firms into an industry will very likely

Question

Quizplus · Accepted Answer

When new firms enter an industry, it increases the overall supply of goods or services in that industry. This shift in supply curve to the right results in a decrease in market price, as the new firms create competition for established businesses. The increase in competition leads to a reduction in profits for existing firms, as they now have to lower prices to remain competitive. Therefore, all of the responses are correct.

The Entry of New Firms into an Industry Will Very