When More Producers Enter a Competitive Market, the Market Supply

question 79

Multiple Choice

When more producers enter a competitive market, the market supply curve

• A)shifts to the right.
• B)shifts to the left.
• C)does not shift.
• D)always becomes steeper.
• E)always becomes flatter.

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Definitions:

Oligopolization

describes the process whereby a market becomes dominated by a few large companies, reducing competition.

Cutthroat Competition

An extremely aggressive competition where companies use strategies to undercut their rivals' prices.

Cartel

A coalition of producers or vendors aimed at keeping prices elevated by limiting competitive practices.

Concentration Ratio

Concentration ratio is a measure of the total output produced in an industry by a given number of firms, indicating the level of market competition.