The Fact That Barriers to Entry Are Low in Competitive

question 168

Multiple Choice

The fact that barriers to entry are low in competitive price-searcher markets means that if current firms are making economic losses,

• A) these losses will remain in the long run because no firms can exit the market.
• B) current firms will exit the market, causing the demand curves that face the remaining firms to increase.
• C) new firms will enter the market, causing the demand curves that face the existing firms to decrease.
• D) new firms will enter the market, causing no change in the demand curves that face the existing firms in the market.

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Definitions:

Out-groups

Social groups to which an individual does not belong, often perceived as different or opposed to the individual's in-group.

Secondary Groups

Large social groups that interact on a more impersonal and formal level for a short period of time, unlike primary groups which are typically smaller and involve close, emotional ties.

Sociologists

Scholars and researchers who study the development, structure, and functioning of human society and the dynamics of social relationships.

Shared Definition

A mutually understood and agreed upon meaning of a term or concept by a group of people.