In an Environment of Free Entry and Exit,the Presence of Positive

question 110

Multiple Choice

In an environment of free entry and exit,the presence of positive economic profits in an industry

• A) indicates a market failure.
• B) can never occur.
• C) induces a reallocation of resources out of other industries and into the one with positive economic profit.
• D) can be sustained indefinitely.
• E) allows one firm to dominate the industry.