Question

When new entrants into a competitive market have higher costs than existing firms, A. sunk costs become an important determinant of the short-run entry strategy. B. accounting profits will be the primary determinant of entry into the market. C. market price will rise. D. long-run supply is constant.

Answer 1

C.

Step-by-step explanation:

When new entrants into a competitive market have higher costs than existing firms, market price will rise.