Question 1
In which forms of market structure can new firms freely enter the? industry?
◦ Perfect competition only
◦ All except perfect competition
◦ Perfect competition and monopolistic competition
◦ Perfect competition and certain oligopolies (e.g. sugar, regular unleaded petrol, cement)
Question 2
The fast food industry is NOT considered perfectly competitive because
◦ there are very many firms.
◦ entry and exit are strictly regulated by the government.
◦ the firms' products are differentiated.
◦ the firms all produce an identical product.