When a new firm enters a market,it:

Name: When a new firm enters a market,it:
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Question

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When a new firm enters a market, it increases competition which reduces the profits of existing firms. This is because the new firm has to attract customers by offering similar or better products at lower prices, causing the existing firms to lose their market share and revenue. However, it does not necessarily push the equilibrium price upward or shift the market supply or demand curve.

When a New Firm Enters a Market,it