Considering the spectrum of market structures and moving from pure competition to pure monopoly we can say that
A) entry barriers get lower but exit gets more difficult.
B) entry becomes harder but exit becomes easier.
C) entry gets harder and the number of firms dwindles.
D) none of the above.

Question

Quizplus · Accepted Answer

As we move from pure competition towards pure monopoly, the market gradually becomes more concentrated, with fewer firms operating in the market. This implies that entry becomes more difficult as the dominant players have established market power and can deter new entrants with their pricing strategies, advertising campaigns, and other resources. Additionally, the barriers to exit are usually higher in concentrated markets due to the costs of shutting down operations, laying off workers, and disposing of assets. Hence, option C is the best choice.

Considering the Spectrum of Market Structures and Moving from Pure