Asked by Maegan Cantu on Jun 01, 2024
Verified
All of these are characteristics of a competitive industry,except:
A) Many substitutes
B) No barriers to entry
C) Homogenous product
D) Little or no information on rivals' products
Competitive Industry
An industry environment where numerous competitors offer similar products or services, resulting in the need for businesses to vie for market share and customer attention.
Homogenous Product
Goods that are identical in quality and cannot be distinguished from one another by consumers.
Barriers To Entry
Obstacles that prevent new competitors from easily entering an industry or area of business, such as high start-up costs or complex regulations.
- Recognize the characteristics of a perfectly competitive market, including demand curve elasticity.
- Understand the role and impact of barriers to entry and exit in competitive industries.
Verified Answer
TB
Taziana BluntJun 08, 2024
Final Answer :
D
Explanation :
Little or no information on rivals' products is not a characteristic of a competitive industry. In fact, having access to information about rivals' products is an important aspect of competition. The other options, such as many substitutes, no barriers to entry, and homogenous product, are all characteristics of a competitive industry.
Learning Objectives
- Recognize the characteristics of a perfectly competitive market, including demand curve elasticity.
- Understand the role and impact of barriers to entry and exit in competitive industries.