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:

Clinical Psychologists

Professionals specializing in diagnosing and treating mental, emotional, and behavioral disorders through psychological techniques.

Personality Psychologists

Study various aspects of personality including traits, behaviors, and psychological processes.

Cognitive Psychologists

Scientists who study mental processes such as perception, memory, thought, and problem-solving.

School Psychologists

Professionals specialized in the psychological assessment, evaluation, and intervention within educational settings to support student learning and well-being.