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:

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An individual's belief in their own ability to execute behaviors necessary to produce specific performance attainments.

Successfully Complete

To finish a task or activity in a manner that meets or exceeds predefined standards or expectations.

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