A competitive industry would generally be the result of which of the following?

Question

Quizplus · Accepted Answer

A large number of competing small firms typically results in a competitive industry as each firm is vying for market share and must keep prices and quality of goods or services competitive to succeed. While B and C could potentially be competitive industries, they are less likely because a small number of large or medium firms have more market power and may be able to set prices higher without fear of losing customers. D is also technically true, as any industry could be competitive regardless of the size or number of firms, but A is the most likely scenario for a competitive industry.

A Competitive Industry Would Generally Be the Result of Which