Free entry and exit condition exist in ________.

perfect competition

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monopoly

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monopolistic competition

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(A) and (C)

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Solution

The correct option is D (A) and (C)
Monopolistic competition is a market structure where there is also no barriers to entry which is also a feature of perfect competition.
Every body can fix the price as per their choice. Hence, free entry and exit condition exist in perfect competition and monopolistic competition.

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Similar questions

Which of the following is not a feature of perfect competition ?

(a) Large no. of buyers

(b) Free entry and exit

(d) Differentiated products

Explain the implications of the following features of perfect competition:

(a) large number of buyers and sellers

(b) freedom of entry and exit to firms

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