Competition is more likely to exist when
A)there is easy entry into and exit out of industries.
B)a government-issued license is required to set up a firm in an industry.
C)the government purchases most goods and services.
D)economic power is concentrated among a few large firms.

Question

Quizplus · Accepted Answer

Competition is more likely to exist when there is easy entry into and exit out of industries because this allows more firms to enter the market, increasing competition. The other options typically restrict competition by either limiting the number of participants or concentrating power.

Competition Is More Likely to Exist When