Barriers to entry ?
Correct answer: C. Do not exist in monopolistic competition
- A. Do not exist in monopoly
- B. Cannot exist in oligopoly
- C. Do not exist in monopolistic competition
- D. Do exist in perfect competition
Explanation
Monopolistic competition permits relatively free entry and exit, so significant barriers to entry are absent in the standard model. Barriers commonly exist in monopoly and oligopoly, while perfect competition also assumes free entry.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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