In a Market That Allows Free Entry and Exit,when Does

question 163

Multiple Choice

In a market that allows free entry and exit,when does the process of entry and exit end for the typical firm in the market

• A)when economic profit is zero
• B)when total revenue is equal to average total cost
• C)when average revenue exceeds marginal cost
• D)when accounting profit is zero

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Definitions:

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government.

Federal Income Tax

The tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Payroll Tax

Taxes imposed on employers or employees, based on the salary paid to employees.

Federal Personal Income Tax

A tax levied by the U.S. government on the annual income of individuals, households, and trusts.