The primary force encouraging the entry of new firms into a purely competitive industry is:

A) normal profits earned by firms already in the industry.
B) economic profits earned by firms already in the industry.
C) government subsidies for start-up firms.
D) a desire to provide goods for the betterment of society.

Economic Profits

Profits calculated by subtracting both the explicit and implicit costs from a firm's total revenues; a measure of earnings exceeding the opportunity costs.

Entry Of Firms

The process by which new companies enter into an industry, adding to the competition.

Government Subsidies

Financial support provided by the government to organizations, businesses, or individuals, aimed at promoting certain activities or reducing costs.