Free Entry and Exit
In the long run there is free entry and exit. There are numerous firms waiting to enter the market each with its own "unique" product or in pursuit of positive profits and any firm unable to cover its costs can leave the market without incurring liquidation costs. This assumption implies that there are low start up costs, no sunk costs and no exit costs. The cost of entering and exit is very low.
Read more about this topic: Monopolistic Competition
Famous quotes containing the words free, entry and/or exit:
“Punk to me was a form of free speech. It was a moment when suddenly all kinds of strange voices that no reasonable person could ever have expected to hear in public were being heard all over the place.”
—Greil Marcus (b. 1945)
“When women can support themselves, have entry to all the trades and professions, with a house of their own over their heads and a bank account, they will own their bodies and be dictators in the social realm.”
—Elizabeth Cady Stanton (1815–1902)
“There is no exit from the circle of one’s beliefs.”
—Keith Lehrer (b. 1936)