Free Entry and Exit Means That the Number of Firms

question 452

Multiple Choice

Free entry and exit means that the number of firms in the market adjusts until

• A)producers continuously enter the market freely.
• B)the market grows to a profitable level.
• C)economic profits are driven to zero.
• D)products are free.

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Definitions:

Simple Interest

Interest calculated only on the initial principal of a loan or deposit, without compounding.

Annually

Refers to something that happens once every year.

Simple Interest

Interest figured solely on the initial sum, excluding any compounded amounts.

Maturity Value

The amount that will be received at the end of a fixed-term investment, including the principal and any accumulated interest.