An Industry with Easy Entry and Exit of a Large

question 20

Multiple Choice

An industry with easy entry and exit of a large number of small firms producing a standardized product is:

• A)in perfect competition.
• B)in monopolistic competition.
• C)an oligopoly.
• D)a monopoly.

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Definitions:

Marginal Enterprises

Businesses operating at the minimum level of profitability necessary to sustain operations.

Merchandise

Goods or products that are bought and sold in the course of business.

Production Plant

A facility where raw materials are transformed into finished goods through various processes and machinery.

Free Internet Service

Internet access provided at no cost to the user, often with certain limitations or supported by advertisements.