In a Competitive Market with Free Entry and Exit,the Process

question 206

Multiple Choice

In a competitive market with free entry and exit,the process of entry and exit ends when,for the typical firm in the market,

• A)marginal revenue is equal to long-run average total cost.
• B)total revenue is equal to average total cost.
• C)average revenue exceeds marginal cost.
• D)accounting profit is driven to zero.

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Definitions:

Liquid

broadly refers to assets or investments that can be quickly converted into cash without significant loss of value or to materials that flow and have no fixed shape.

Power Distance

A cultural dimension that reflects the extent to which less powerful members of organizations and societies accept and expect that power is distributed unequally.

Equality

The state of being equal, especially in status, rights, and opportunities, advocating for the same treatment and absence of discrimination.

Ambiguity

The quality of being open to more than one interpretation, lacking clear definition or boundaries, which can lead to uncertainty or confusion.