What characteristic of a competitive market has made the 'long run pretty short' in the market for iPhone applications?
A)Few firms in the market
B)Identical products
C)Ease of entry
D)Blocked entry

Question

Quizplus · Accepted Answer

The characteristic of ease of entry, with low barriers to entry, has made the long run pretty short in the market for iPhone applications. This has led to a high rate of innovation, with new firms entering and existing firms adapting quickly to changes in the market. As a result, the market has become highly competitive and dynamic, with a range of new products and services being developed all the time. This has made it difficult for any one firm to establish a dominant position for a long period of time, and has kept prices low for consumers.

What Characteristic of a Competitive Market Has Made the 'Long