Free entry and exit of firms can only occur in perfectly competitive markets because barriers to entry and exit are nonexistent.

Name: Free entry and exit of firms can only occur in perfectly competitive markets because barriers to entry and exit are nonexistent.
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Question

Quizplus · Accepted Answer

In perfectly competitive markets, there are no barriers to entry or exit, allowing firms to freely enter or leave the market based on profitability.

Free Entry and Exit of Firms Can Only Occur in Perfectly