The Rational Rule for Entry says that a seller should enter a market when:
A)price exceeds average cost.
B)the number of sellers in the market is falling.
C)marginal revenue is below average cost.
D)average cost exceeds average revenue.

Question

Quizplus · Accepted Answer

The Rational Rule for Entry states that a seller should enter a market when the price of the good or service being sold exceeds the average cost of producing it. This means that the seller can make a profit by producing and selling the good or service in the market. Therefore, the correct answer is A) price exceeds average cost.

The Rational Rule for Entry Says That a Seller Should