6. When new entrants into a competitive market have higher costs than existing firms, Group of answer choices accounting profits will be the primary determinant of entry into the market. sunk costs become an important determinant of the short-run entry strategy. market price will rise. long-run supply is constant.
6. When new entrants into a competitive market have higher costs than existing firms, Group of answer choices accounting profits will be the primary determinant of entry into the market. sunk costs become an important determinant of the short-run entry strategy. market price will rise. long-run supply is constant.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Firms In Competitive Markets
Section: Chapter Questions
Problem 1CQQ
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6. When new entrants into a competitive market have higher costs than existing firms,
Group of answer choices
accounting profits will be the primary determinant of entry into the market.
sunk costs become an important determinant of the short-run entry strategy.
market price will rise.
long-run supply is constant.
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