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

question 308

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:

Troposphere

The lowest layer of Earth's atmosphere, where weather occurs and where most atmospheric water vapor exists.

Greenhouse Gases

Gases in Earth's atmosphere, such as carbon dioxide and methane, that trap heat, leading to a warming effect known as the greenhouse effect.

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, formed from the decomposed remains of plants and animals over millions of years.

CFCs

Chlorofluorocarbons, chemical compounds once commonly used in refrigerants and aerosol sprays that contribute to ozone layer depletion.