Easy Entry and Exit Ensure That Perfectly Competitive Firms Cannot

question 74

True/False

Easy entry and exit ensure that perfectly competitive firms cannot make a long-run economic profit.

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Definitions:

GICs

Known as Guaranteed Investment Certificates in Canada, these investments assure a certain rate of return within a predetermined period.

Investor

An individual or organization that allocates capital with the expectation of receiving financial returns.

Rate

The percentage at which interest is charged or paid, or a measure of change over time.

Compound-Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.