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

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Definitions:

Single Mothers

Women who are raising their child or children without the involvement of the children's father, due to various circumstances.

Required Condition

A necessary criterion or condition that must be met for a procedure to be carried out or for a statement to be considered true.

Graphical Device

A tool or technology used to create visual representations of data to facilitate understanding.

Degrees of Freedom

In statistics, the number of independent pieces of information available to estimate another piece of information or parameters in a model.