What Will Happen If New Entrants to a Competitive Market

question 152

Multiple Choice

What will happen if new entrants to a competitive market have higher costs than existing firms

• A)Accounting profits will be the primary signal for entrance.
• B)Sunk costs become an important determinant of short-run entrance strategy.
• C)Market price must be rising.
• D)New firms expect that their costs will decrease very quickly.

---

Definitions:

Urinary System

The bodily system responsible for the production, storage, and elimination of urine, including the kidneys, bladder, and urethra.

Diabetes

A chronic condition characterized by high levels of sugar in the blood due to the body's inability to produce or use insulin effectively.

Graves' Disease

An autoimmune disorder that leads to overactivity of the thyroid gland (hyperthyroidism), causing symptoms such as rapid heart rate, weight loss, and eye bulging.

Senses

The faculties by which the body perceives an external stimulus, including sight, smell, hearing, touch, and taste.