Which of the following can serve as an entry barrier?
A)Legal restrictions
B)Patents
C)Control of scarce resources or inputs
D)All of these responses are correct.

Question

Quizplus · Accepted Answer

Legal restrictions can prevent new entrants from entering a market, such as licensing requirements or zoning laws. Patents give the patent holder exclusive rights to produce and sell a product or technology, creating a barrier to entry for competitors. Control of scarce resources or inputs, such as access to a certain type of raw material, can also make it difficult for new entrants to compete. Therefore, all of the given responses can serve as entry barriers.

Which of the Following Can Serve as an Entry Barrier