When new firms enter a perfectly competitive market in which firms are making an economic profit, the market supply curve shifts_ and the market price_ A. rightward; falls B. rightward; rises C. leftward; falls D. leftward; rises Each firm's output A decreases B increases C. remains unchanged

When new firms enter a perfectly competitive market in which firms are making an economic profit, the market supply curve shifts_ and the market price_ A. rightward; falls B. rightward; rises C. leftward; falls D. leftward; rises Each firm's output A decreases B increases C. remains unchanged

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

When new firms enter a perfectly competitive market in which firms are making an economic profit, the
market supply curve shifts_ and the market price_
A. rightward; falls
B. rightward; rises
C. leftward; falls
D. leftward; rises
Each firm's output
A decreases
B increases
C. remains unchanged

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