When Free Entry Is One of the Attributes of a Market

question 95

Multiple Choice

When free entry is one of the attributes of a market structure, economic profits are:

• A)generally driven to zero in the long run
• B)generally negative for all firms operating in the short run.
• C)generally zero in the short run.
• D)generally positive in the long run.
• E)generally negative in the long run.

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Definitions:

Avoidance

A behavioral or psychological strategy of keeping away from certain situations, thoughts, or feelings that cause distress.

Approach

A method or way of dealing with a problem or task.

Positive End State

A positive end state refers to the desired and beneficial outcome of a process, plan, or intervention, aimed at improving well-being or resolving a problem.

Cultural Considerations

Factors that recognize and respect the beliefs, languages, interpersonal styles, and behaviors of individuals shaped by their cultural background.