When New Firms Have an Incentive to Enter a Competitive

question 116

Multiple Choice

When new firms have an incentive to enter a competitive price-taker market, their entry will

• A) increase the price of the product.
• B) drive down profits of existing firms in the market.
• C) shift the market supply curve to the left.
• D) increase demand for the product.

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Definitions:

High-Status Employees

Workers who hold positions of authority or esteem within an organization, often associated with higher pay or more influence.

Internal Causes

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Perceptual Errors

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