When considering perfect competition the absence of entry barriers implies that
A. firms can enter but cannot get out of the industry easily.
B. all firms will earn economic profit.
C. firms can enter and leave the industry without serious impediments.
D. no firm can enter the industry.
Answer: C
Economics
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A firm that must determine the price-output combination that maximizes profit because it faces a downward-sloped demand curve
A) has a perfectly elastic demand curve. B) has a perfectly inelastic demand curve. C) is a price-taker. D) is a price searcher.
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