In a market characterized by perfect competition, what happens to price and quantity when new firms enter the market? A. Price increases, quantity increases B. Price decreases, quantity decreases C. Price remains the same, quantity increases D. Price decreases, quantity increases
In a market characterized by perfect competition, what happens to price and quantity when new firms enter the market? A. Price increases, quantity increases B. Price decreases, quantity decreases C. Price remains the same, quantity increases D. Price decreases, quantity increases
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In a market characterized by perfect competition , what happens to price and quantity when new firms enter the market? A. Price increases, quantity increases B. Price decreases, quantity decreases C. Price remains the same, quantity increases D. Price decreases, quantity increases
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