What do economies of scale, the ownership of essential raw materials, and patents have in common?
A)They must all be present before price discrimination can be practiced.
B)They are all barriers to entry.
C)They all help explain why a monopolist's demand and marginal revenue curves coincide.
D)They all help explain why the long-run average cost curve is U-shaped.

Question

Quizplus · Accepted Answer

These factors are barriers to entry because they make it difficult for new firms to enter the market. Economies of scale allow established firms to produce at lower costs, ownership of essential raw materials restricts access for competitors, and patents prevent others from using certain technologies or processes.

What Do Economies of Scale, the Ownership of Essential Raw