Which of the following is necessary for the presence of competition in a market?
A) Government regulations that assure firms will make excess profits.
B) Suppliers that offer a homogeneous product.
C) A price that always equals per-unit production costs.
D) Low barriers to entry into the market.

Question

Quizplus · Accepted Answer

Low barriers to entry are necessary for competition because they allow new firms to enter the market, which increases competition and prevents existing firms from maintaining monopolistic control.

Which of the Following Is Necessary for the Presence of Competition