The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7

-If significant barriers to entry exist in a market, then the market is best described through the model of perfect competition.

Question

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7
 
-If significant barriers to entry exist in a market, then the market is best described through the model of perfect competition.

Quizplus · Accepted Answer

If significant barriers to entry exist in a market, then the market is not best described through the model of perfect competition, but rather another market structure such as a monopoly or oligopoly.

The Figure Given Below Shows the Aggregate Demand and Supply