Free Entry Implies That

question 7

Multiple Choice

Free entry implies that

• A) a perfectly competitive firm can never earn a profit.
• B) if firms in an industry are making excessively high profits, new firms are likely to enter the industry.
• C) the government regulates the number of firms that are allowed in an industry.
• D) firms will always earn a profit, as new firms can enter the industry at any time they like.

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Definitions:

Psychoanalysis

A therapeutic approach and theory of personality development that emphasizes unconscious motives and conflicts, originated by Sigmund Freud.

Childhood Trauma

Distressing experiences that occur during childhood, which can have long-lasting emotional and psychological effects.

Repression

In psychoanalytic theory, a mechanism of defense by means of which thoughts, impulses, or memories that give rise to anxiety are pushed out of consciousness.

Freudian Terms

Freudian Terms relate to the concepts or terminologies developed by Sigmund Freud in the field of psychoanalysis, focusing on unconscious desires, conflict resolution, and personality development.