Economics Q62

0. An industry comprises of four firms that produce an easily replicable product. The barriers to entry are low. This industry is best characterized as:

Answer
Comment
Array

Option : C
Explanation : Even though there are only four firms in the industry, the barriers to entry are low. This implies that other firms are voluntarily not entering the industry, making this most likely a perfectly competitive environment.

You must be logged in to post a comment.

You must be logged in to post a comment.

Forgot your password?

I agree with the Terms.