When New Firms Have an Incentive to Enter a Competitive

question 42

Multiple Choice

When new firms have an incentive to enter a competitive market, their entry will:

• A)leave market prices unchanged
• B)drive down profits of existing firms in the market
• C)leave the quantity of goods supplied in the market unchanged
• D)do all of the above

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Definitions:

Internal Supply Estimates

Projections or assessments of the availability of resources, personnel, or capabilities within an organization to meet its current or future needs.

Economic Force

A factor that influences the direction and dynamics of an economy, including elements like supply and demand, inflation, and government policy.

Increased Automation

The growing use of machines and technology to perform tasks that were traditionally done by humans, leading to enhanced efficiency but also potential job displacement.

Human Resource Information System

An integrated system designed to help manage HR processes, employee data, and organizational policies and procedures, often through technology.