Free (unrestricted)entry and exit of firms is not an essential feature for adjustments in industry output in response to price changes in a competitive market.

Question

Quizplus · Accepted Answer

In a competitive market, free entry and exit of firms is essential for adjustments in industry output in response to price changes, as it allows the market to reach equilibrium by enabling new firms to enter when profits are high and existing firms to exit when profits are low.

Free (Unrestricted)entry and Exit of Firms Is Not an Essential