In perfect competition there are no barriers to entry for firms. Which of the following would be a low barrier to entry? 1.it is difficult to obtain resources to produce the product. 2.profits in the marketplace must be zero. 3. fixed costs of production are relatively low. 4.marginal revenues from selling goods are relatively high.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Price-searcher Markets With Low Entry Barriers
Section: Chapter Questions
Problem 15CQ
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In perfect competition there are no barriers to
entry for firms. Which of the following would be
a low barrier to entry?
1.it is difficult to obtain resources to produce the
product.
2.profits in the marketplace must be zero.
3. fixed costs of production are relatively low.
4.marginal revenues from selling goods are
relatively high.
Transcribed Image Text:In perfect competition there are no barriers to entry for firms. Which of the following would be a low barrier to entry? 1.it is difficult to obtain resources to produce the product. 2.profits in the marketplace must be zero. 3. fixed costs of production are relatively low. 4.marginal revenues from selling goods are relatively high.
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