Multiple Choice
What happens in a competitive industry when more firms enter?
A) Demand decreases and the price declines, which in turn lowers profits.
B) Supply increases and the price declines, which in turn lowers profits.
C) Supply increases and the price rises, which in turn raises profits.
D) Demand increases and the price rises, which in turn raises profits.
Correct Answer:
Verified
Correct Answer:
Verified
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