For which of the following market structures is it assumed that there are barriers to entry?
A) Perfect competition
B) Monopolistic competition
C) Monopoly
D) all of the above
E) B and C only

Question

Quizplus · Accepted Answer

In a monopoly market structure, there are significant barriers to entry that prevent other firms from entering the market and competing with the monopolist. These barriers can be legal (patents, licenses), natural (control of resources), or strategic (high start-up costs, aggressive tactics). Perfect competition and monopolistic competition, on the other hand, have low barriers to entry, allowing new firms to enter the market more freely.

For Which of the Following Market Structures Is It Assumed