How Do The Entry And The Exit Of Businessmen In The Industry Affect T…
How do the entry and the exit of businessmen in the industry affect the market in a perfect competition?
Answer:
In turn, a shift in supply for the market as a whole will affect the market price. Entry and exit to and from the market are the driving forces behind a process that, in the long run, pushes the price down to minimum average total costs so that all firms are earning a zero profit.
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