Barriers to entry are factors that:
A) decrease costs to new firms entering the market.
B) increase costs to new firms entering the market.
C) increase costs to existing firms in the market.
D) decrease costs to existing firms in the market.

Question

Quizplus · Accepted Answer

Barriers to entry increase costs to new firms entering the market. These could include factors such as high startup costs, economies of scale, government regulations, and established brand recognition of existing competitors. By increasing costs, these barriers make it more difficult for new firms to enter the market, which can reduce competition and give existing firms more power to set prices and control the industry.

Barriers to Entry Are Factors That