The assumption of free entry implies that
A) a firm in monopolistic competition can never earn a profit.
B) firms will always earn a profit since new firms can enter the industry at any time they like.
C) the government regulates the number of firms that are allowed in an industry.
D) if firms in an industry are making excessively high profits, new firms are likely to enter the industry.
Correct Answer:
Verified
Q1: The fast food industry is not considered
Q2: Which of the following is least likely
Q3: Under perfect competition, super profits are competed
Q5: The wool industry is a perfectly competitive
Q6: The following diagram shows a perfectly competitive
Q7: The following diagram shows a perfectly competitive
Q8: Which of the following statements does not
Q9: E- commerce is bringing more_to the marketplace.
A)
Q10: Which one of the following is true
Q11: A 5- firm concentration ratio shows
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents