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When Free Entry Is One of the Attributes of a Market

Question 26

Multiple Choice

When free entry is one of the attributes of a market structure, economic profits are:


A) generally driven to zero in the long run
B) generally negative for all firms operating in the short run.
C) generally zero in the short run.
D) generally positive in the long run.
E) generally negative in the long run.

Correct Answer:

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