A new firm may incur a cost upon entering a market but has access to the same technology and inputs as established firms.

Question

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A new firm may have to incur costs such as marketing and advertising expenses, setting up infrastructure, and recruitment of employees. However, they have access to the same technology and inputs as established firms, which gives them a level playing field in terms of production and efficiency. A new firm may have to incur costs such as advertising, setting up offices, and employee training when entering a market. However, they have access to the same technology and inputs as established firms, which may help them compete more effectively.

A New Firm May Incur a Cost Upon Entering a Market