Anything that prevents new firms from competing on an equal basis with existing firms in an industry is called a barrier to entry.

Name: Anything that prevents new firms from competing on an equal basis with existing firms in an industry is called a barrier to entry.
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Question

Quizplus · Accepted Answer

This is the correct definition of a barrier to entry. It can include factors such as high start-up costs, legal restrictions or patents held by existing firms.

Anything That Prevents New Firms from Competing on an Equal