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

question 393

Multiple Choice

In a perfectly competitive market, the process of entry and exit will end when
(i) accounting profits are zero.
(ii) economic profits are zero.
(iii) price equals minimum marginal cost.
(iv) price equals minimum average total cost.

• A)(i) and (ii) only
• B)(ii) and (iii) only
• C)(ii) and (iv) only
• D)(i), (ii), (iii), and (iv)

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Definitions:

Procedural Knowledge

What a person knows but cannot really talk about; sometimes called knowing how.

Cognitive Psychology

The branch of psychology that studies mental processes including how people think, perceive, remember, and learn.

Explicitly Told

Information or instructions communicated in a direct, clear, and unambiguous manner.

Personal Strivings

An individual's long-term goals that guide their behavior and reflect their personal values.