With free entry
A) There is a known and limited number of potential suppliers that can produce a good in the long run
B) There is an unlimited number of firms that can produce a good in the long run
C) The long run market demand curve is horizontal at the market price
D) Firms will always enter the market

Question

Quizplus · Accepted Answer

With free entry, there are no barriers to entry for new firms to enter the market. Therefore, in the long run, there can be an unlimited number of firms that can produce a good. This is because new firms can easily enter and compete in the market, which keeps prices at competitive levels.

With Free Entry