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Sagot :
The entry of firms into a market reduces the profits of existing firms in the market.
An economic market is a composite structure that is composed of multiple elements.
- Firms can be placed in the category of competitive markets which are broadly categorized as perfect competition firms or monopolistic competition firms; monopoly, and oligopoly.
- An entry is characterized by a response to increasing profits in the industry.
- These high profits facilitate the entry of new firms into the market.
- The profits of the existing firms reduce as a reaction to the entry of new firms into a market structure.
- Existing firms exit when they start facing recurrent losses.
Therefore, the entry of firms into a market reduces the profits of existing firms in the market.
Learn more about the entry of firms into a market here: https://brainly.com/question/2975624
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