Consider the Raleigh NC market for private swimming lessons. Suppose that there are 40 suppliers of swimming
Question:
Consider the Raleigh NC market for private swimming lessons. Suppose that there are 40 suppliers of swimming lessons and none of them has a large percentage of the market. Also assume that the quality provided by these suppliers is basically the same. In other words, the market is competitive.
If economic profits in this market are positive, what would we expect to happen sometime in the future?
Sellers will _______________ this market, causing the market price of swimming lessons to _______________. This will continue until economic profits are ______________, at which point the market will be "saturated".
Group of answer choices
enter, increase, zero
enter, decrease, zero
exit, increase, zero
enter, increase, negative
exit, increase, negative
exit, decrease, zero