Asked by
Kiara Pierre
on Dec 11, 2024Verified
Which of the following is necessary for the presence of competition in a market?
A) Government regulations that assure firms will make excess profits.
B) Suppliers that offer a homogeneous product.
C) A price that always equals per-unit production costs.
D) Low barriers to entry into the market.
Homogeneous Product
A product that is seen as identical across producers, with no distinct differences from the consumer's perspective, leading to perfect competition.
Barriers To Entry
Obstacles that limit the freedom of potential rivals to enter and compete in an industry or market.
Government Regulations
Guidelines and rules established by governmental bodies to control and direct the activities of businesses and individuals within a society.
- Understand the contribution of barriers to entry in determining the dynamics of market competition.
Verified Answer
GJ
Learning Objectives
- Understand the contribution of barriers to entry in determining the dynamics of market competition.