There are patents and regulations that can prevent firms from entering a monopolistically competitive market.

Name: There are patents and regulations that can prevent firms from entering a monopolistically competitive market.
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Question

Quizplus · Accepted Answer

In a monopolistically competitive market, there are low barriers to entry and exit, meaning patents and regulations do not significantly prevent new firms from entering the market. This is in contrast to a monopoly, where patents and regulations can indeed prevent entry.

There Are Patents and Regulations That Can Prevent Firms from Entering