Final answer:
The statement is false. In a perfectly competitive market, high barriers to entry are not present; it is a market where firms can enter and exit with ease. Barriers to entry typically lead to monopolies or oligopolies, not perfect competition.
Step-by-step explanation:
The statement that because barriers to entry are high, firms in perfect competition can't enter or leave the market with ease is false. In a market characterized by perfect competition, one of the defining features is the ability for firms to enter and exit the market without significant barriers. Barriers to entry are the obstacles that make it difficult for new competitors to start operating in an industry.
Barriers to entry are more associated with market structures like monopolies or oligopolies, where they can be substantial and prevent new firms from entering the market to compete with established firms. These barriers can be legal restrictions, high start-up costs, access to technology, or control over essential resources. When barriers like these exist, it can result in high profits for the incumbent firms and inefficiencies in the market.
In a perfectly competitive market, firms earn normal profits in the long run, and high profits in the short term would be eroded by new firms entering the market, thereby increasing supply and driving down prices. Therefore, it is central to the nature of perfect competition that there are no significant entry barriers.