Question

Which of the following describes a market that is inefficient because it violates the assumption that there is an open market free of entry barriers? O A. Taxi cabs are required to display one of a limited number of medallions in order to operate in New York City. OB. Restaurants at the beach often refuse to allow customers to enter without shoes. O C. The University of Pittsburgh does not accept applicants without a high school diploma. O D. Several small, local hardware stores went out of business after a Home Depot opened in town.

Answer 1

Answer is D because here several small, local hardware stores went out of business after a Home Depot opened in town. It’s shows that open economy is risky for small businesses