A market structure characterized by many competitors, each producing identical products, with free entry and exit into the industry, is described as a(n):
A)monopolistically competitive industry.
B)oligopoly.
C)perfectly competitive industry.
D)monopoly.

Question

Quizplus · Accepted Answer

The characteristics described in the question - many competitors, identical products, free entry and exit - are all hallmarks of a perfectly competitive industry. Monopolistically competitive industries have many competitors, but their products are not identical. Oligopolies have few dominant firms in the market. Monopolies have only one dominant firm with significant barriers to entry.

A Market Structure Characterized by Many Competitors, Each Producing Identical