The entry of new firms into an industry will very likely

Name: The entry of new firms into an industry will very likely
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Question

Quizplus · Accepted Answer

When new firms enter an industry, they bring in additional supply which shifts the industry supply curve to the right. This increased supply typically leads to a decrease in market price as firms compete for customers. The increased competition also reduces the profits of existing firms in the industry. Therefore, all of the above statements are correct.

The Entry of New Firms into an Industry Will Very