In a Competitive Market with Free Entry and Exit, If

question 219

Multiple Choice

In a competitive market with free entry and exit, if all firms have the same cost structure, then

• A)all firms will operate at their efficient scale in the short run.
• B)all firms will operate at their efficient scale in the long run.
• C)the price of the product will differ across firms.
• D)Both a and b are correct.

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Definitions:

R-134a Refrigerants

A type of hydrofluorocarbon (HFC) refrigerant used in automotive and residential air conditioning systems noted for its low impact on the ozone layer.

Electronic Leak Detector

Handheld devices with a flexible probe used to seek out refrigerant leaks. When a leak is detected, a flashing light or buzzer signals the technician.

Truck A/C System

The air conditioning system in a truck, designed to cool the interior of the vehicle to enhance occupant comfort.

Adding Oil

The process of introducing more oil to a system or component to ensure proper lubrication and functionality.