If firms in a perfectly competitive market are making an economic profit in the short run, new firms will enter. How does the entry of new firms change the market?

Question

Answer

The market supply curve leftward, and the market price rises.

Answer

The market supply curve rightward, and the market price falls.

Answer

The market demand curve rightward, and the market price rises.

Answer

The market supply curve shifts leftward, the market demand curve shifts rightward, and the market price rises.

Answer

The market demand curve leftward, and the market price falls.

Crowdly

If firms in a perfectly competitive market are making an economic profit in the ...

Want instant access to all verified answers on moodle.uleth.ca?