Which of the following statements is true?
A) A monopoly is characterized by no entry barriers.
B) Perfect competition is characterized by high entry barriers.
C) Firms in a market with entry barriers are likely to have more market power than firms in a market with no entry barriers.
D) Firms in a market with no entry barriers are likely to have more market power than firms in a market with entry barriers.

Question

Quizplus · Accepted Answer

Entry barriers in a market limit competition by preventing new firms from entering easily. This allows existing firms to maintain higher market power, as they face less competition and can often set prices with more freedom than in markets with no entry barriers.

Which of the Following Statements Is True