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When Entry Barriers Are Low, Firms in a Competitive Price-Searcher

Question 226

Multiple Choice

When entry barriers are low, firms in a competitive price-searcher market


A) can expect many new rivals to enter regardless of current profitability.
B) can expect competing firms to enter the market if the activity is profitable.
C) can never earn economic profit.
D) will always be able to earn economic profit.

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