Apple introduced its iPhone 3G in July 2008 and within a month sales had topped 3 million units.By April 2009, more than 25,000 apps for the iPhone 3G were available in the iTunes store, an indication that in a competitive market,
A)the ease at which a new firm can enter a competitive market is low.
B)the ease at which a new firm can enter a competitive market is high.
C)entry into the market is blocked.
D)entry into the market is restricted in the short run, but becomes easier in the long run.

Question

Quizplus · Accepted Answer

The availability of over 25,000 apps for the iPhone 3G within a year of its release suggests that the ease at which a new firm can enter the competitive market is high. This is because the large number of apps indicates a high level of competition and suggests that new firms have been able to enter the market and develop innovative offerings to compete with established firms.

Apple Introduced Its IPhone 3G in July 2008 and Within