If barriers to entry exist in the market for a product, then:
a. the costs of entry and exit are relatively low.
b. there will be few close substitutes of the product in the market.
c. firms will be incurring losses in both the short run and the long run.
d. firms will tend to have relatively less monopoly power.
e. the existing firms will quit the market in the long run due to mounting losses.
b
You might also like to view...
"A single-price monopoly charges a higher price and produces more output than a perfectly competitive industry." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
When the rate of growth of per capita income of poorer countries is higher than that of richer countries, it leads to economic convergence
a. True b. False Indicate whether the statement is true or false