The Assumption of Free Entry Implies That

Multiple Choice

The assumption of free entry implies that

A) a firm in monopolistic competition can never earn a profit.
B) firms will always earn a profit since new firms can enter the industry at any time they like.
C) the government regulates the number of firms that are allowed in an industry.
D) if firms in an industry are making excessively high profits, new firms are likely to enter the industry.