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.

---

Definitions:

Purchasing Power

The worth of a currency depicted by the quantity of goods or services that can be purchased with one unit of the currency.

Expected Variance

Expected Variance is a statistical measure that captures the anticipated variability or dispersion of returns on an investment.

Probability Distribution

A mathematical tool that catalogues all possible values a random variable could assume and their likelihoods within a specified range.

Stock of the Economy

The stock of the economy typically refers to the total value of assets, both financial and physical, possessed within an economy at a given time.