If Gary's Gym is earning a positive economic profit due to the price being greater than the average total cost, what is most likely to happen in the market as a result of new competitors entering the oligopoly?

When Gary's Gym is earning a positive economic profit, it means they are making more money than it costs to run the gym, which attracts new competitors to the market. In an oligopoly, where a few companies dominate, this profit signals to other businesses that there is money to be made, prompting them to enter the market. As new gyms open up, the competition increases, which can lead to lower prices for customers. For example, if another gym opens nearby and offers lower membership fees, Gary's Gym may need to reduce their prices to keep their customers. Over time, this competition can drive down profits for all gyms until they reach a point where they are just covering their costs, which is called normal profit.