If a firm can easily enter and exit the market it operates in which market?
A) Perfectly competitive.
B) Monopolistically competitive.
C) Monopolistic.
D) Oligopolistic.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are no barriers to entry or exit, meaning that any firm can easily enter or exit the market without facing any major obstacles. Moreover, firms in a perfectly competitive market are price takers, and therefore, cannot influence the price of the product they sell.

If a Firm Can Easily Enter and Exit the Market