One assumption of the model of perfect competition is that entry into the market is easy.This implies that:

Question

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If entry into the market were difficult due to significant economies of scale relative to the size of the market, it would not be easy for new firms to enter and compete with existing firms. Therefore, if entry is easy, it suggests that there are not significant economies of scale relative to the size of the market. A, C, D, and E all suggest barriers to entry which would make it more difficult for new firms to enter the market.

One Assumption of the Model of Perfect Competition Is That