Asked by Florence Nichole Rogan on May 18, 2024
Verified
There is easy entry into the ________ and ________ industries.
A) perfectly competitive; monopolistically competitive
B) monopolistically competitive; oligopolistic
C) oligopolistic; monopolistic
D) monopolistic; perfectly competitive
Perfectly Competitive
A market structure where there are many sellers and buyers, homogeneous products, and no single buyer or seller can influence prices.
Monopolistically Competitive
Describes a market structure where many firms sell products that are similar but not identical, allowing for product differentiation and some control over price.
Oligopolistic
Pertaining to a market structure where a small number of firms dominate the industry, leading to limited competition and high barriers to entry.
- Understand the implications of easy entry and exit in monopolistically competitive markets for firms’ competitive strategies and market power.
Verified Answer
SO
Sofia ObregonMay 23, 2024
Final Answer :
A
Explanation :
In perfectly competitive and monopolistically competitive industries, barriers to entry are low, allowing new firms to enter the market more easily compared to oligopolistic and monopolistic industries, where barriers are typically high.
Learning Objectives
- Understand the implications of easy entry and exit in monopolistically competitive markets for firms’ competitive strategies and market power.