33) In a competitive market that is characterized by free entry and exit, what will be the result? A. All firms will operate at efficient scale in the short run. B. The price of the product will differ across firms. C. All firms will operate at efficient scale in the long run. D. The number of sellers in the market will steadily decrease over time
33) In a competitive market that is characterized by free entry and exit, what will be the result? A. All firms will operate at efficient scale in the short run. B. The price of the product will differ across firms. C. All firms will operate at efficient scale in the long run. D. The number of sellers in the market will steadily decrease over time
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 13CQ
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Multiple choice question - Micro
33) In a competitive market that is characterized by free entry and exit, what will be the result?
- A. All firms will operate at efficient scale in the short run.
- B. The price of the product will differ across firms.
- C. All firms will operate at efficient scale in the long run.
- D. The number of sellers in the market will steadily decrease over time
32) When profit-maximizing firms in a competitive market are earning profits, what must be happening in the market?
- A. The most inefficient firms will be encouraged to leave the market.
- B. New firms will enter the market.
- C. Market supply must exceed market demand at the
market equilibrium price. - D. Market demand must exceed market supply at the market equilibrium price
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