Entry barriers:
A)exist in all market structures.
B)exist in perfect competition and monopolistically competitive markets.
C)do not exist in any market structures;otherwise nothing would be produced.
D)exist in monopoly and oligopoly markets.

Question

Quizplus · Accepted Answer

Entry barriers such as patents, economies of scale, and high initial investment costs are more likely to exist in monopoly and oligopoly markets where there are fewer competitors and established companies have greater control over the market. In perfect competition and monopolistically competitive markets, firms have easier entry and exit and fewer entry barriers, leading to greater competition. Therefore, option D is the correct choice.

Entry Barriers