When Entry Barriers into a Market Are Low, Firms Will

question 165

Multiple Choice

When entry barriers into a market are low, firms will tend to earn zero economic profit in the long run because

• A) low entry barriers lead to rising costs.
• B) profit-seeking entrepreneurs will not enter a market when entry barriers are low.
• C) short-run profit attracts additional suppliers and drives down the market price.
• D) consumers will refuse to pay more than the cost of producing a good once they find out the producer's per-unit costs.

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Definitions:

Macrophages

A type of white blood cell that engulfs and digests cellular debris, foreign substances, microbes, and cancer cells in a process known as phagocytosis.

Cytokines

Small proteins released by cells that have a specific effect on the interactions and communications between cells, especially in immune responses.

T Helper Cells

A subtype of white blood cells that play a crucial role in the immune system by assisting other cells in immunological processes.

B Cells

A type of white blood cell part of the immune system, responsible for producing antibodies to fight infections.