In a Market That Is Characterized by Free Entry and Exit

question 28

Multiple Choice

In a market that is characterized by free entry and exit, profit serves the function of:

• A) drawing new firms into the industry when profit is greater than normal.
• B) drawing new firms into the industry when profit is lower than normal.
• C) causing some firms to leave when profit is greater than normal.
• D) causing some firms to enter when profit is lower than normal.
• E) compensating owners with a higher than normal rate of return on investment.

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Definitions:

Snoring

The loud breathing sound occurring during sleep, caused by the vibration of respiratory structures due to obstructed air movement.

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A theoretical concept suggesting there are specialized neurons in the brain that integrate information from various sources to create a temporary cognitive workspace.

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Integrate Neural Activity

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