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.

Security prices are set by active market participants. which of the following is not a consequnce of this fact? a. the market price will be set by the buyer who can take best advantage of the asset. b. the price is set by the buyer willing to pay the highest price. c. superior information about an asset can increase its value by reducing its risk. d. market participants have a strong incentive to reveal private information about a security.