Because Barriers to Entry Are Low in Competitive Price-Searcher Markets

question 90

Multiple Choice

Because barriers to entry are low in competitive price-searcher markets, in the long run, a firm's price will be equal to

• A) marginal revenue.
• B) average total cost.
• C) average variable cost.
• D) average fixed cost.

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Definitions:

Joint Committees

Committees made up of members from both houses of a bicameral legislature, tasked with addressing issues that require input from both the Senate and the House of Representatives.

Economic

Pertaining to the production, distribution, and consumption of goods and services, and the analysis of the behavior of economies.

Taxation

The process by which governments finance their expenditure by imposing charges on citizens and corporate entities.

Ping Ponging

The process in which legislative bills are sent back and forth between the two houses of a legislature for approval or amendment.