Heterogeneous products and barriers that make entry into an industry difficult are characteristics of imperfect competition.

Question

Quizplus · Accepted Answer

Heterogeneous products and barriers to entry are characteristics of imperfect competition where firms have some degree of market power and are able to set prices above marginal cost. This is in contrast to perfect competition where products are homogeneous and firms have no market power.

Heterogeneous Products and Barriers That Make Entry into an Industry