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MMLU-Pro / 7127 / Why is it realistic to expect relatively free entry and exit in a…

Problem

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question

Why is it realistic to expect relatively free entry and exit in a monopolistically competitive industry?

category

economics

options

  1. Long-term contractual obligations for suppliers
  2. Intense competition from foreign markets
  3. Patents and copyrights that restrict competition
  4. Perfectly homogeneous products
  5. Significant economies of scale
  6. Numerous, small firms with relatively little capital required
  7. High barriers to entry
  8. High customer loyalty to existing brands
  9. Limited market demand
  10. Government regulations

src

stemez-Economics

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