Use the figure below, which shows the linear demand and constant cost conditions facing a firm with a high barrier to entry, to answer Questions .
-If the entry barrier is removed consumers will be better off because

Question

Use the figure below, which shows the linear demand and constant cost conditions facing a firm with a high barrier to entry, to answer Questions  . 
-If the entry barrier is removed consumers will be better off because

Quizplus · Accepted Answer

With the removal of the entry barrier, there will be more firms entering the market and increasing competition. This will lead to lower prices and an increase in consumer surplus. Therefore, consumers will be better off.

Use the Figure Below, Which Shows the Linear Demand and Constant