Which of the Following Industries Is Most Likely to Exhibit

question 539

Multiple Choice

Which of the following industries is most likely to exhibit the characteristic of free entry?

• A)nuclear power
• B)municipal water and sewer
• C)dairy farming
• D)airport security

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Definitions:

ATC

Average total cost (ATC) is the total cost of production divided by the quantity of output produced, representing the cost per unit of output.

Marginal Cost

The supplementary expense involved in creating an additional unit of a product or service.

Marginal Revenue

The extra revenue a company earns by selling an additional unit of a product or service.

Competitive Market

A market structure characterized by many buyers and sellers where no single entity can dictate or significantly alter the market price.