When Free Entry Is One of the Attributes of a Market

question 73

Multiple Choice

When free entry is one of the attributes of a market structure, economic profits are:

• A)eventually driven to zero
• B)negative for all firms
• C)never above or below zero
• D)always positive

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Definitions:

Financial Intermediary

An institution that acts as a middleman between investors and borrowers, facilitating the flow of funds in the financial market.

Real Estate Brokerage

A service involved in arranging the buying, selling or renting out of properties, utilizing agents or brokers to facilitate transactions between buyers and sellers.

Mortgages

Loans specifically used for purchasing real estate, where the property itself serves as collateral to secure the loan.

Liabilities and Net Worth

The total of all debts and obligations owed by an entity minus its total assets, portraying the entity's financial health and capital.