Which of the Following Is Least Likely a Characteristic of Profit

question 15

Multiple Choice

Which of the following is least likely a characteristic of profit persistence in an industry?

• A)Entry barriers exist
• B)Economic profits should quickly converge to zero
• C)Barriers to imitation exist
• D)Firms earning above-average profits today should continue to do so in the future
• E)Low profit firms today should remain low-profit firms in the future

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Definitions:

Theory

A model of interconnected ideas or concepts that explains what is observed and makes predictions about future events.

Hypothesis

A specific prediction of what should be observed in a study if a theory is correct.

Clinical Psychologists

Professionals specializing in diagnosing and treating mental, emotional, and behavioral disorders through psychological techniques.

Personality Psychologists

Study various aspects of personality including traits, behaviors, and psychological processes.