Which of the following can be thought of as a barrier to entry?
A) scale economies.
B) patents.
C) strategic actions by incumbent firms.
D) all of the above

Question

Quizplus · Accepted Answer

All of the options listed - scale economies, patents, and strategic actions by incumbent firms - can act as barriers to entry for new firms in a market. Scale economies refer to cost advantages that accrue to firms as they increase their production levels. This can make it difficult for new firms to enter a market and compete with incumbents who have already achieved large scale economies. Patents give firms exclusive rights to produce and sell a product or technology, which can prevent new firms from entering the market with competing products. Strategic actions by incumbent firms can include things like aggressive advertising or predatory pricing, which can make it difficult for new firms to compete. Together, these factors can create significant barriers to entry in many markets.

Which of the Following Can Be Thought of as a Barrier