Asked by Megan McDermott on May 18, 2024
Verified
A monopolistically competitive industry is characterized by having no barriers to entry.
Barriers
Obstacles or impediments that prevent or hinder progress, such as trade barriers which can restrict the flow of goods between countries.
- Gain an understanding of the key elements that characterize a monopolistically competitive market, namely the proliferation of numerous businesses, the distinction of products, and the lack of major entry barriers.
Verified Answer
AG
Alexa gonzalezMay 20, 2024
Final Answer :
True
Explanation :
In a monopolistically competitive market, there are low or no barriers to entry, allowing new firms to enter the market easily, which differentiates it from a monopoly where high barriers to entry exist.
Learning Objectives
- Gain an understanding of the key elements that characterize a monopolistically competitive market, namely the proliferation of numerous businesses, the distinction of products, and the lack of major entry barriers.
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