We Assume That in the Short Run in a Perfectly

question 36

Multiple Choice

We assume that in the short run in a perfectly competitive market firms:

• A) can enter and exit the market.
• B) can enter, but not exit the market.
• C) can exit, but not enter the market.
• D) cannot enter or exit the market.

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Definitions:

1960s

A decade marked by significant social, political, and cultural change worldwide, including movements for civil rights and against the Vietnam War in the United States.

Technological Progress

Innovations and improvements in technology that can lead to more efficient production methods and economic growth.

Factor of Production

Inputs used in the production of goods or services to make an economic profit, including land, labor, capital, and entrepreneurship.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information, leading to firms being price takers.