Economics 2281 · O Level · Market structure

Market structure — practice question

Which conditions are most likely to draw small firms into entering a market?

  • Athe market for the product: local; fixed costs of entering the industry: high
  • Bthe market for the product: local; fixed costs of entering the industry: low
  • Cthe market for the product: national; fixed costs of entering the industry: high
  • Dthe market for the product: national; fixed costs of entering the industry: low

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