For a market to be considered purely competitive,new rivals must be free to enter if they feel they can effectively compete

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are no barriers to entry, which means that new firms are free to enter the market and compete. This promotes competition and helps to ensure that prices are set at a level that reflects supply and demand. If new rivals are prevented from entering the market, then it cannot be considered purely competitive.

For a Market to Be Considered Purely Competitive,new Rivals Must