Entry by firms into an industry is shown by:
A)a shift to the right of each individual firm's demand curve.
B)a shift to the left of each individual firm's demand curve.
C)an upward shift of each individual firm's ATC curve.
D)a shift to the left of each individual firm's supply curve.

Question

Quizplus · Accepted Answer

When new firms enter an industry, the market supply increases, leading to a decrease in the market price. This results in a shift to the left of each existing firm's demand curve, as they now face more competition and a lower price for their product.

Entry by Firms into an Industry Is Shown By