Unrestricted entry and exit into the market is found in
A) perfect competition and monopolistic competition.
B) perfect competition and oligopoly.
C) monopolistic competition and oligopoly.
D) perfect competition, monopolistic competition and oligopoly.

Question

Quizplus · Accepted Answer

Unrestricted entry and exit into the market is a characteristic of both perfect competition and monopolistic competition. In oligopoly, there are often barriers to entry that limit or prevent new firms from entering the market. Therefore, choices B and C are incorrect. Choice D is incorrect because oligopoly does not have unrestricted entry and exit.

Unrestricted Entry and Exit into the Market Is Found in