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    Managerial Economics Analysis Problems Cases
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    Exam 8: Perfect Competition and Monopoly
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    In a Market That Is Characterized by Free Entry and Exit
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In a Market That Is Characterized by Free Entry and Exit

Question 41

Question 41

True/False

In a market that is characterized by free entry and exit, profit serves the function of drawing new firms into the industry when it is greater than normal and causing some firms to leave when it is less than normal.

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