Markets with hit-and-run entry and exit experience
A) barriers to entry.
B) firms entering whenever they can make a profit and exiting when they cannot make a profit.
C) steady long-run economic profit.
D) a very steady number of firms.

Question

Quizplus · Accepted Answer

Hit-and-run entry and exit markets are characterized by firms entering when they can make a profit and exiting when they cannot make a profit. This suggests that there are no significant barriers to entry, and firms are free to enter and exit the market as they please. This type of market typically does not offer steady long-run economic profit and may result in a fluctuating number of firms operating in the market.

Markets with Hit-And-Run Entry and Exit Experience