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:

Reflexes

Involuntary and automatic responses to specific stimuli, which are inherent and play a role in survival and development.

Goal-Directed Behavior

Actions or behaviors that are performed with the intention of achieving a specific outcome or goal.

Circular Reactions

A developmental process by which infants learn to reproduce desired occurrences originally discovered by chance.

Phonemes

The least sound component in a language capable of distinguishing one word from another.