Consider the following characteristics of a particular industry: - there is freedom of entry and exit
- in long-run equilibrium,each firm is producing a level of output where there are increasing returns to scale
This industry is likely to be

Question

Quizplus · Accepted Answer

In a monopolistically competitive industry, firms have freedom of entry and exit, and in the long run, they may operate under increasing returns to scale due to product differentiation and excess capacity.

Consider the Following Characteristics of a Particular Industry: - There