The assumption of free entry and exit is necessary for firms to be price takers in a competitive market.

Name: The assumption of free entry and exit is necessary for firms to be price takers in a competitive market.
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Question

Quizplus · Accepted Answer

The assumption of free entry and exit is not necessary for firms to be price takers; rather, it is the presence of many firms and homogeneous products that ensure firms are price takers in a competitive market.

The Assumption of Free Entry and Exit Is Necessary for Firms