Which of the following is likely to act as a barrier to entry in a monopoly market?
A) The monopoly ﬁrm makes normal economic proﬁts.
B) The monopoly ﬁrm owns a patent on the good.
C) The number of buyers in the market is large.
D) The good produced by the monopolist is perishable.

Question

Quizplus · Accepted Answer

The monopoly firm owning a patent on the good acts as a barrier to entry because it legally prevents other firms from producing or selling the patented product, thus maintaining the monopoly's market power.

Which of the Following Is Likely to Act as a Barrier