A ________ prevents new firms from entering and competing in a monopolistic industry.
A) barrier to entry
B) collusive agreement
C) market power sharing agreement
D) cartel agreement

Question

Quizplus · Accepted Answer

A barrier to entry is any obstacle that prevents new competitors from easily entering an industry or area of business. This can include things like high startup costs, strict regulations, or significant technology requirements, which all serve to protect existing firms from new competition.

A ________ Prevents New Firms from Entering and Competing in a Monopolistic