Sellers in a market will become less profitable when:
A)new sellers enter the market.
B)marginal cost falls.
C)average revenue rises.
D)market demand rises.

Question

Quizplus · Accepted Answer

When new sellers enter the market, the supply will increase, which will reduce prices due to competition. This will make it more difficult for sellers to make a profit, thereby reducing profitability.

Sellers in a Market Will Become Less Profitable When