If There Are No Barriers to Entry into an Industry

question 63

Multiple Choice

If there are no barriers to entry into an industry

• A) short-run economic profits must be zero.
• B) long-run economic profits must be zero.
• C) both short-run and long-run economic profits must be zero.
• D) short-run and long-run profits must still be positive.

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Definitions:

Patient-Visits

Refers to the total number of individual patient encounters with healthcare professionals, usually measured in a clinic or hospital setting.

Total Fixed Cost

The sum of all fixed expenses that a company incurs, which do not vary with production volume.

Planning Budget

A budget designed for a particular level of activity, often used for evaluating potential income and expenditures for future accounting periods.

Direct Labor

The labor costs of employees who are directly involved in the production of goods or services.