As firms enter a perfectly competitive market, the price A) ...

[mydiamond]

As firms enter a perfectly competitive market, the price
 
  A) falls and the existing firms' economic profits do not change.
  B) rises and the existing firms' economic profits decrease.
  C) falls and the existing firms' economic profits decrease.
  D) falls and the existing firms' economic losses do not change.

Question 2

In comparison to an employer in a competitive labor market, a monopsony employer pays a ________ wage rate and hires ________ workers.
 
  A) lower; fewer
  B) lower; more
  C) higher; more
  D) higher; fewer

[pallen55]

Answer to Question 1

C

Answer to Question 2

A

[mydiamond]

Wow, this really help

[smrtceo]

YES! Correct, THANKS for helping me on my review