Free Entry and Exit of Firms Can Only Occur in Perfectly

question 13

True/False

Free entry and exit of firms can only occur in perfectly competitive markets because barriers to entry and exit are nonexistent.

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Definitions:

Intrinsic Motivation

The drive to engage in activities for their own sake, for the pleasure and satisfaction derived from participation.

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments, influencing how goals, tasks, and challenges are approached.

Grit

A personality trait characterized by perseverance and passion for long-term goals.

External Motivation

is the push or drive to perform a task or engage in an activity due to factors outside oneself, such as rewards or the avoidance of negative consequences, effectively a synonym for extrinsic motivations with an emphasis on its external nature.