When there are many small firms in a specific industry,what is likely to occur?
A) Competitive advantage
B) An oligopoly
C) Private enterprise
D) Perfect competition
E) Market force reliability

Question

Quizplus · Accepted Answer

When there are many small firms in a specific industry, it is likely to lead to perfect competition. This is because with many small firms, no single firm can influence the market price or supply. Each firm will have a negligible share of the market and will have to accept the market price, leading to price competition and efficient use of resources.

When There Are Many Small Firms in a Specific Industry,what