Natural barriers to entry ________.
A) include patent laws and exclusive franchises
B) most commonly arise through economies of scale
C) result from an increasing long-run average cost curve
D) must be sustained by government regulation

Question

Quizplus · Accepted Answer

Natural barriers to entry most commonly arise through economies of scale, where larger firms can produce at a lower cost per unit than smaller competitors, making it difficult for new entrants to compete.

Natural Barriers to Entry ________