Question

If the market price is $6.30, in the long run, Group of answer choices new firms will enter the market. existing firms will exit the market. firms will neither exit nor enter the market. Not enough information to answer this question.

Answer 1

Option D. Not enough information to answer this question.

Step-by-step explanation:

There are number of factors the company considers before entering or exiting the market and some of these include Marginal cost or marginal revenue analysis, project analysis which considers the future cost and benefits by continuing the business, Porter five forces factors consideration before entering, Capabilities and resource analysis, etc.

So merely a price doesn't decides that we going to enter the market or we are leaving the market. Their are chances that we can control the cost of that the competitor starts selling the product at cost which will have harmful impact.

So the information provided to answer this question is not enough.