Which of the following is a barrier to entry into a monopoly market?

Question

Quizplus · Accepted Answer

Economies of scale can create a barrier to entry because the existing monopoly can produce at a lower cost due to its size and level of output, making it difficult for new firms to compete on price. The other options, economic profits and a large number of firms, do not necessarily create barriers to entry. Economic profits can actually attract new firms to enter the market, and a large number of firms indicates a competitive market rather than a monopolistic one.

Which of the Following Is a Barrier to Entry into a Monopoly