In a "perfect" market, entry values are the same as exit values.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are no barriers to entry or exit, which means that there are no differences between entry values and exit values. This is because there are many buyers and sellers who have perfect information about the market, and no single participant has the ability to influence prices. Therefore, prices are determined solely by supply and demand, and profits are driven down to zero in the long run.

In a "Perfect" Market, Entry Values Are the Same as Exit