Question

Can someone please help

Increased competition between producers of a good may lead to
A. a decrease in profit
B. an increase in price
C.a drop in demand
D. a rise in taxes

Answer 1

B an increase in price

Answer 2

A. a decrease in profit

Step-by-step explanation:

Increased competition between suppliers of the same product tends to benefit consumers, as competition leads to a decrease in the price and profit margin of suppliers. As more competitors participate in the market, each one tries to sell the product at a lower price to gain a larger share of the market. Consequently, the profit margin is smaller and only the most efficient suppliers tend to remain in the market in the long run.