In a Perfectly Competitive Market, the Process of Entry and Exit

question 465

Multiple Choice

In a perfectly competitive market, the process of entry and exit will end when (i)
Accounting profits are zero.
(ii)
Economic profits are zero.
(iii)
Price equals minimum marginal cost.
(iv)
Price equals minimum average total cost.

• A)(i) and (ii) only
• B)(ii) and (iii) only
• C)(ii) and (iv) only
• D)(i), (ii), (iii), and (iv)

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Definitions:

Wage Gaps

Disparities in earnings among workers, often differentiated by factors such as gender, race, or job type.

Skilled Labour

Workforce with specialized training, qualifications, or expertise required to perform certain tasks.

Technology Transfer

The process of sharing or disseminating technology between different organizations, or from one country to another, often aimed at fostering innovation and development.

Multinational Corporation

A company that operates in several countries around the world, managing production or delivering services in more than one country.