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.

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Definitions:

Biological Molecules

Organic compounds essential to life, including carbohydrates, lipids, proteins, and nucleic acids, forming the structure and performing the functions of living organisms.

Fatty Acids

Long-chain hydrocarbons that contain a carboxylic acid group at one end. They are an important component of lipids in living organisms.

Lipids

A broad group of naturally occurring molecules that include fats, waxes, sterols, and fat-soluble vitamins among others, used for energy storage and as structural components of cell membranes.

Organic Acids

Organic acids are a group of acidic compounds that contain carbon and are found in many plants and animals, essential in various biochemical processes.