Assume a Market Is Perfectly Competitive

question 36

Multiple Choice

Assume a market is perfectly competitive.When a new producer enters the market,the

• A)price in the market increases.
• B)price in the market decreases.
• C)price in the market does not change.
• D)market is no longer a competitive market.

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Definitions:

Intermediate Products

Goods that are used as inputs in the production of other goods, including raw materials, unfinished goods, and semi-finished goods.

Economic Well-Being

A measurement of how well individuals or societies can satisfy their needs and wants, typically assessed by factors like income, employment, and access to goods and services.

Military Spending

Financial outlay by a government for the maintenance and operation of armed forces, including expenses for salaries, equipment, and facilities.

GDP

The aggregate value, in monetary or market terms, of all end-use goods and services produced domestically within a specific period is what constitutes the Gross Domestic Product.