Question

Entry into a market by new firms will increase the:_______

Answer 1

Answer:

The right approach is Option a (supply of the good).

Explanation:

• Supply would increase substantially of some more production. Increasing the income of established businesses wouldn’t rise, as there has been increasing competitiveness.
• This similar value of the product is likely to decline due to further fulfillment as well as the same requirement. Marginal costs would never be compromised.

Anyone else alternatives possible does not apply to the situation throughout the question. That's the right thing above.