Free Exit Implies That

question 48

Multiple Choice

Free exit implies that

• A) a perfectly competitive firm can never earn a profit.
• B) if an industry's existing firms make excessively high losses, firms are likely to exit the industry.
• C) the government regulates the number of firms it allows in an industry.
• D) firms will always earn below normal profit, as firms can exit the industry at any time they like.

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Definitions:

Black Families

Social and economic units consisting of individuals with African descent, focusing on their demographic characteristics, family structures, and sociocultural dynamics.

Headed

Directed or moving towards a specific direction or destination.

Women

Female human beings, with discussions often focusing on their social, political, and economic rights and status.

Welfare Reform Act

Legislation aimed at changing the welfare system by encouraging work and reducing dependency on government benefits.