Which of the following is a common barrier to entry in a monopoly market?
A)Economic profits greater than zero for the monopolist.
B)A rising long-run average total cost curve.
C)A patent on a new product.
D)A vertical supply curve.

Question

Quizplus · Accepted Answer

A patent on a new product creates a legal barrier to entry, preventing other firms from producing and selling the same product, thus giving the monopolist complete control over the market. Economic profits greater than zero (A) and a rising long-run average total cost curve (B) are not barriers to entry, and a vertical supply curve (D) is a characteristic of a perfectly competitive market, not a monopoly market.

Which of the Following Is a Common Barrier to Entry