Which of the following is NOT an effective entry barrier?
A) A firm being granted a patent for its product
B) When huge economies of scale exist
C) A firm owning all of a vital resource needed to produce a good
D) A firm earning very high economic profits

Question

Quizplus · Accepted Answer

High economic profits attract new entrants rather than act as a barrier to entry. Barriers to entry typically involve structural market conditions that deter or prevent new competitors from easily entering an industry, such as patents, economies of scale, and control over essential resources. High economic profits can indicate a lucrative market, potentially encouraging more firms to enter if they believe they can compete effectively.

Which of the Following Is NOT an Effective Entry Barrier