Under which market structure are profit rewards most likely to be quickly taken away by existing firms or new firms entering the industry?
A) oligopoly
B) pure monopoly
C) pure competition
D) monopolistic competition

Question

Quizplus · Accepted Answer

In pure competition, there are many firms and free entry and exit in the market, so any economic profits are quickly eroded by new firms entering the industry.

Under Which Market Structure Are Profit Rewards Most Likely to Be