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

question 340

Multiple Choice

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

• A)price equals minimum marginal cost.
• B)marginal revenue equals marginal cost.
• C)economic profits are zero.
• D)accounting profits are zero.

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Definitions:

Bait And Switch

A deceptive marketing practice where customers are lured with the promise of a product or service at a certain price, only to find it unavailable and replaced with a more expensive option.

Account Kiting

The illegal practice of exploiting banking systems to create artificial funds by writing checks between several accounts.

Probable Cause

A standard of reasonable belief, based on facts, that is required to arrest a person, conduct a search, or seize property in legal proceedings.

Arrest Warrant

A legal document issued by a judge or magistrate which authorizes the police to arrest and detain an individual suspected of a crime.