Which of the following is NOT a barrier to entry for a monopoly?
A) economies of scale for the relevant range of output
B) a patent on the product being sold
C) the ability to charge a price that is above marginal cost
D) receiving a public franchise

Question

Quizplus · Accepted Answer

Charging a price above marginal cost is a characteristic of a monopoly, not a barrier to entry. Barriers to entry prevent other firms from entering the market, while pricing above marginal cost is a result of having monopoly power.

Which of the Following Is NOT a Barrier to Entry