Question

Identify one market where you think entry is easy explain why?

How does that effect profits in that market

Answer 1

Akind of maibet where the enteu entouy is easy is perfect.competition. This is one of the Feature ou perfect competitos magket ikat is_face entory and exist. Supposeasituation there are produc AS who earns Supea normel pouousThis willine signal to other producers to enter the market As more and more peroducers stout enteung the magiket, the supply suises as the mesuet perice will touckle_down.d Hence, price starting falling with the Ladvent of new producers and eventualle e these supeo normal profits whilvanishid And Each liom will caum Stupea normal po ofit in long giun_similar will happen if finns oue incwoung super normal losses: In this situation; fisims will start leaving the market. As the resuet; the demand will wise and will twoim out to be in excess of

Whatever is being supplied. So peices slaut ousing. Eventually the fillims will end up earning su nomal profits. -