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.

---

Definitions:

Nervous System

The complex network of nerve cells and fibers that transmits nerve impulses between parts of the body.

Post-Traumatic Stress Disorder

A psychiatric state initiated by direct exposure to or observation of a distressing incident, featuring persistent recollections, troubling nightmares, and substantial anxiety.

Mental Disorder

A health condition characterized by significant changes in thinking, emotion, or behavior, associated with distress and/or impaired functioning.

Generalized Anxiety Disorder

A mental health condition characterized by excessive, persistent worry and anxiety about various aspects of daily life.