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Exhibit 9-2 -As Firms Enter a Competitive Industry

Question 61

Multiple Choice

Exhibit 9-2 Exhibit 9-2 -As firms enter a competitive industry, A) both market demand and industry output increase. B) industry economic profits increase. C) output price falls and individual firms increase output. D) output price falls and cost curves shift down. E) output price falls and industry output increases.
-As firms enter a competitive industry,

A) both market demand and industry output increase.
B) industry economic profits increase.
C) output price falls and individual firms increase output.
D) output price falls and cost curves shift down.
E) output price falls and industry output increases.

Correct Answer: