Which of the following is a potential barrier to entry into a monopoly market?
A)Fixed costs are large relative to variable costs.
B)Large economies of scale exist.
C)The required infrastructure for an industry is high cost.
D)All of these are potential barriers to entry.

Question

Quizplus · Accepted Answer

All of the options listed (large fixed costs relative to variable costs, large economies of scale, and high-cost required infrastructure) are potential barriers to entry into a monopoly market. These factors can prevent new competitors from entering the market, thereby allowing the monopolist to maintain market power.

Which of the Following Is a Potential Barrier to Entry