Because Barriers to Entry Are Low in Competitive Price-Searcher Markets

question 90

Multiple Choice

Because barriers to entry are low in competitive price-searcher markets, in the long run, a firm's price will be equal to

• A) marginal revenue.
• B) average total cost.
• C) average variable cost.
• D) average fixed cost.

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Definitions:

Nonreciprocal Altruism

Altruistic behavior where one individual benefits another without the expectation of the favor being returned.

Lions Hunt

A cooperative behavior exhibited by lions, primarily by the females of a pride, to strategically capture prey to feed the group.

Fitness Payoffs

The benefits in terms of survival and reproduction that an organism gains from a particular behavior or trait.

Selfishness

The act of placing one's own needs or desires above the welfare of others.