When New Firms Have an Incentive to Enter a Competitive

question 209

Multiple Choice

When new firms have an incentive to enter a competitive 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:

Schizophrenia

A noteworthy mental dysfunction characterized by disruption in mental operations, sensory interpretations, affectivity, communicative proficiency, self-awareness, and lifestyle.

Psychosis

A mental disorder characterized by a disconnection from reality, which may include hallucinations and delusions.

Schizophrenia

A severe mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into fantasy and delusion, and a sense of mental fragmentation.

Influenza

A highly contagious viral infection of the respiratory tract that causes annual outbreaks and can be severe, leading to hospitalization or death in high-risk groups.