When there are new entrants into a market, an existing seller will NOT face:
A)decreased demand.
B)lower profits.
C)upwardly shifting cost curves.
D)customers with more choices.

Question

Quizplus · Accepted Answer

When new entrants come into the market, the existing seller may face increased competition and potentially lower profits and customers with more choices, but they will not typically face an upward shift in their cost curves as a result. This is because cost curves are determined by the firm's own production decisions and technology, regardless of the number of competitors in the market.

When There Are New Entrants into a Market, an Existing