Explain How a Market with No Barriers to Entry or Exit

question 112

Essay

Explain how a market with no barriers to entry or exit results in long-run economic profits equaling zero.

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Definitions:

Imagery

The use of vivid or figurative language to represent objects, actions, or ideas, often used in literature and psychology to shape perceptions.

Nonprogrammed Decisions

Decisions made in response to situations that are unique, not well-defined and lack pre-established processes.

Sequential

Relating to or forming a sequence, where things follow a logical order or a fixed series.

Programmed

Describes tasks or decisions that follow a predetermined procedure or set of rules, often automated through technology.