Entry of new firms into monopolistically competitive industries is relatively easy because ______. Multiple choice question. existing firms experience economies of scale product development is unnecessary competitors are large firms advertising is not required capital requirements are low

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06-06-2022
Business

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Entry of new firms into monopolistically competitive industries is relatively easy because ______. Multiple choice question. existing firms experience economies of scale product development is unnecessary competitors are large firms advertising is not required capital requirements are low

Sagot :

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dubeyshailja64 dubeyshailja64 · Answer 1 · 2022-06-14T08:51:08-04:00

Entry of new firms into monopolistically competitive industries is relatively easy because capital requirements are low. Thus the correct answer is D.

What is a monopoly?

A monopoly refers to a firm that has a single authority in the market and controls the market completely. In a monopoly, there is a single rule and an absence of competition.

Monopolistic competition describes a competitive market in which a small number of sellers give clients near alternatives. It is a market system in which a large number of enterprises compete in the same industry.

Each firm runs on its own, producing comparable but production of innovative products, with no concern for what other companies are doing. These types of firms are very easy to enter and exit the market.

Therefore, option D with low capital requirements is the correct answer.

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What is a monopoly?

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