As Long as There Is Free Entry into a Market

question 60

Multiple Choice

As long as there is free entry into a market:

• A)firms in that market can sustain prices above average total cost.
• B)firms in that market can maintain market power.
• C)economic profits are not sustainable.
• D)accounting profits will be zero.

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Definitions:

Visual Cortex

The part of the cerebral cortex that processes visual information.

Semicircular Canals

Structures located in the inner ear that are critical for maintaining balance and spatial orientation by detecting rotational movements.

Vestibular Sacs

Structures within the inner ear involved in the sense of balance, helping to detect changes in the position of the head.

Inner Ear

The innermost part of the ear, containing the cochlea, vestibule, and semicircular canals, which is essential for hearing and balance.