Question

Which of the following industries is most likely to exhibit the characteristic of free entry? a. nuclear power b. municipal water and sewer c. dairy farming d. airport security

Answer 1

Answer:

c. dairy farming

Explanation:

Free entry can be defined as the situation in which business firms such as sellers of goods or service providers can enter into the market freely and start selling to consumers.

This ultimately implies that, there are no legal barriers or just a minimum barrier, if any for new firms starting the same business as others.

Hence, dairy farming is the industry which is most likely to exhibit the characteristic of free entry.

A diary farming is one of such industries that allows new agents to come into the business without any barrier because it simply involves the production of essential commodities such as milk, beef etc which are usually required on a large scale in an economy.