Under monopoly, the barriers to entry and exit of firms lead to absence of competition in the market. Do you think this is necessary in certain strategicareas like in the case of production of defense goods and atomic energy?

Under monopoly, the barriers to entry and exit of firms lead to absenc

1.	Under monopoly, the barriers to entry and exit of firms lead to absence of competition in the market. Do you think this is necessary in certain strategicareas like in the case of production of defense goods and atomic energy?
Answer» <html><body><p></p>Solution :Yes, <a href="https://interviewquestions.tuteehub.com/tag/barriers-394144" style="font-weight:bold;" target="_blank" title="Click to know more about BARRIERS">BARRIERS</a> to entry and exit of firms is necessary in certain strategic areas (defense <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a>, atomic energy, etc.) because these areas are of national <a href="https://interviewquestions.tuteehub.com/tag/security-11642" style="font-weight:bold;" target="_blank" title="Click to know more about SECURITY">SECURITY</a> and production of such goods cannot be left open for <a href="https://interviewquestions.tuteehub.com/tag/competition-423521" style="font-weight:bold;" target="_blank" title="Click to know more about COMPETITION">COMPETITION</a>.</body></html>