What will the entry of new firms into a competitive market do to market supply and market prices

Name: What will the entry of new firms into a competitive market do to market supply and market prices
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The entry of new firms into a competitive market will increase the market supply, as there are more goods and services available in the market. The increase in supply will result in a decrease in market prices as firms try to outdo each other and attract customers. Therefore, the best choice is B.

What Will the Entry of New Firms into a Competitive