What encourages firms to enter markets A. No firms in the industry can experienc

Question

What encourages firms to enter markets

A. No firms in the industry can experience losses.

B. Firms believe they can violate patent protection with impunity.

C. Some existing firms in the market must be earning economic profits.

D. The diversity of products offered must be small.

A. No firms in the industry can experience losses.

B. Firms believe they can violate patent protection with impunity.

C. Some existing firms in the market must be earning economic profits.

D. The diversity of products offered must be small.

Explanation / Answer

the thought that encourage firm to enter market is that there are profits prevailling i the market, some firms in the market are earning higher profits thus making it easily attractive for the other firms to enter.

so answer is C

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