The characteristic of entry and exit ensures that firms
The characteristic of entry and exit ensures that firms
Earn excess profit
Earn normal profit
Break-even
Expand their operations
Correct answer is D
Free entry and exit are economic terms used to describe the condition of a free market economic
Free entry is a condition in which sellers can freely enter the market with its product to make sales. Free exit occurs when a firm can leave the market without limit when economic losses are being incurred. Firms tend to expand in their operations as they grow, the concept of free entry and exit avails them the opportunity of entering and leaving a market at will.
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