In a Perfectly Competitive Market, the Process of Entry and Exit

question 131

Multiple Choice

In a perfectly competitive market, the process of entry and exit will end when firms in the market:

• A)are making zero economic profit
• B)are operating with excess capacity
• C)capture market power
• D)experience decreasing marginal revenue

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Definitions:

Violations of the Law

Actions or conduct that breach the rules or statutes prescribed by legal authority.

Ethical Standards

Principles that govern the behavior of individuals and organizations, guiding them towards choosing what is right and beneficial for all stakeholders.

Misconduct

Improper or unlawful behavior by an individual, often violating the rules or standards of a profession or organization.

Hydrothermal Rock

A rock that precipitated directly from hot water, either at depth or on the surface.