Implication of freedom of entry and exit to firms
Describe the implication of freedom of entry and exit to the firms beneath perfect competition.
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The firms enter the organization whenever they find the existing firms are earning super normal profits. Their entry increases output of the industry, brings down the market price and therefore reduce gains. The entry continues till gains are decresed to normal (or zero). The firms begin leaving the industry whenever they are facing losses. This decreses output of the industry, increases market price and decrease losses. The exit continues till losses are wiped out.
The demand curve which is least consistent along with the existence of a substitution consequence is within: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D. Q : Examples of Substitution goods Illustrations of goods which are close substitutes comprise: (i) Technology and capital. (ii) Motorcycles and helmets. (iii) Chopsticks and forks. (iv) Cowhides and beef. Find out the right answer from the above op
Illustrations of goods which are close substitutes comprise: (i) Technology and capital. (ii) Motorcycles and helmets. (iii) Chopsticks and forks. (iv) Cowhides and beef. Find out the right answer from the above op
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