If Restrictions on Entry and Exit of Firms Are Introduced

question 24

Multiple Choice

If restrictions on entry and exit of firms are introduced in free markets,________.

• A) all existing firms will earn equal profits in the long run
• B) existing firms will incur equal losses in the long run
• C) the market will allocate resources efficiently
• D) resources in the market will not allocated efficiently

---

Definitions:

Multidirectional

Refers to the concept that human characteristics change in every direction throughout the lifespan, encompassing growth and decline.

Contextual

Relating to or depending on the context or surrounding environment in which something exists or occurs.

Cross-cultural

Relating to, involving, or comparing two or more different cultures or cultural areas.

Perceptual Abilities

The capacity to interpret or give meaning to different types of sensory information, such as visual or auditory inputs.