Which of the following is a common barrier to entry in a monopoly market?
A)Economic profit of the monopolist.
B)Antitrust laws.
C)A rising long-run average total cost curve.
D)Economies of scale.

Question

Quizplus · Accepted Answer

Economies of scale can create a barrier to entry in a monopoly market. As the monopolist produces more output, the average cost of producing each unit decreases due to economies of scale. This means that new firms attempting to enter the market would have to produce at a higher cost than the monopolist, making it difficult to compete.

Which of the Following Is a Common Barrier to Entry