(Answered) If input prices fall in the steel industry, then (ceteris paribus):If input prices fall in the…

➤ When will new firms enter the steel industry after input prices drop?
Existing firms raise output immediately in the short run. If lower input prices persist, firms earn positive economic profits and new competitors enter over the long run. Entry expands industry supply further, pushing the market price down until economic profits approach zero in a perfectly competitive market.