If firms can easily enter and exit a market, then A. firms will produce at minimum average cost in the short run. B. firms will produce where price is less than marginal cost. C. firms will earn zero economic profit in the long run. D. firms will produce where price is greater than marginal revenue. E. firms will produce at minimum average fixed cost in the long run.
Added by Tracie S.
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Step 1: If firms can easily enter and exit a market, it implies that there are no barriers to entry or exit, allowing firms to come in and leave the market freely. Show more…
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