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Scott Drazan
on Nov 27, 2024

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When new firms enter a purely competitive industry, the market supply curve will shift to the left.

Market Supply Curve

A graphical representation showing the total quantity of a good that sellers are willing and able to sell at various prices, holding all else constant.

Purely Competitive

A market structure characterized by a large number of small firms producing similar products, with easy entry and exit from the market, leading to price-taking behavior.

New Firms

New firms refer to businesses that have been recently established and are in the early stages of their operational life.

  • Describe the effect of new firms entering or existing firms leaving a purely competitive market on market supply and equilibrium.
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Jacob StAndreNov 29, 2024
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