Which of the following is a barrier to entry?
A)control of scarce resources
B)economies of scale
C)government-created barriers such as patents and copyrights
D)control of scarce resources, economies of scale, and government-created barriers (i.e., patents and copyrights)

Question

Quizplus · Accepted Answer

All of these options can create barriers to entry for potential competitors in a market. Control of scarce resources means that a company has exclusive access to resources that are necessary to produce a certain product or service, making it difficult for others to enter the market. Economies of scale allow larger companies to produce goods or services more efficiently and sell them at a lower cost, making it difficult for smaller competitors to compete. Government-created barriers, such as patents and copyrights, can prevent other companies from producing or selling the same product or service, giving the holder of the patent or copyright a monopoly in the market.

Which of the Following Is a Barrier to Entry