Question

Free entry means that _____.

a. the government pays any entry costs for individual firms.
b. government-funded research lowers the costs of patents and other barriers to entry.
c. a firm's marginal cost is zero.
d. no legal barriers prevent a firm from entering an industry.

Answer 1

Free entry means that no legal barriers prevent a firm from entering an industry.

Step-by-step explanation:

Free entry means that no legal barriers prevent a firm from entering an industry. It indicates that there are no government restrictions or regulations that hinder a company from joining a specific market or industry. This allows firms to enter and compete freely, leading to increased competition and potentially better outcomes for consumers.

Answer 2

c. a firm's marginal cost is zero.

Step-by-step explanation:

Free entry is the condition in which new firms are allowed to enter an industry costlessly in order to achieve an economic benefit by establishing production and beginning to sell the product. To keep the equilibrium in the market free entry also allows free exit of firms.

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