What triggers entry in a competitive market? Describe the process that ends further entry
What will be an ideal response?
When firms in a competitive market make an economic profit, the economic profit serves as an inducement to other firms to enter the market. As the other firms enter, the supply increases and the price falls. The fall in the price eventually eliminates the economic profit, at which time entry stops.
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“The hotter it gets, the more water people drink.” This statement implies that the relationship between temperature and water consumption must have a
A. negative slope. B. positive slope. C. slope always equal to one. D. slope always equal to 45 degrees.
Three firms agree to operate as a monopoly and charge the monopoly price of $100 for their product and (jointly) produce the monopoly quantity of 20,000 units. If the competitive price for the product is $35, under the Clayton Act these three firms face treble damages of ______
A) $1,300,000 B) $3,900,000 C) $3,000,000 D) $1,000,
During the colonial period, the largest cities were typically
a. port towns. b. located in the hinterland. c. in the South. d. landlocked.
"Depression means idleness. And idleness means loss of skills, loss of self-respect, plummeting morale, family disintegration, and sociopolitical unrest." This quote describes some of the:
natural rate of unemployment b. Consequences of the hyperinflation that accompanies a recession c. Characteristics of structural unemployment d. Noneconomic costs of unemployment