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:

Long Lunches

Extended midday breaks from work or obligations, often used informally for relaxation, socializing, or conducting business.

Undesirable Behavior

Undesirable behavior involves actions that are socially unacceptable, disruptive, or harmful, often leading to negative consequences.

Aggressive Behavior

Involves actions that are intended to cause harm or assert dominance over others, which can be physical or verbal.

Escape Learning

A form of behavior conditioning where the subject learns to perform certain behaviors to terminate an existing undesirable condition or avoid it in the future.