what happens when more and more firms enter an industry?
a) Decline in economic profits.
b)An increase in the accounting profits.
c)an increase in price
d)a decline in production
Answers
Answered by
11
Answer:
Entry of many new firms causes the market supply curve to shift to the right. As the supply curve shifts to the right, the market price starts decreasing, and with that, economic profits fall for new and existing firms. As long as there are still profits in the market, entry will continue to shift supply to the right.
Answered by
2
Answer:
an increase in price
Explanation:
an increase in price
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