Industries with high barriers to entry
A)Pushes profits to normal returns
B)Increases the likelihood of firms entering the industry
C)Help firms sustain long term profits
D)Increases the number of competitors

Question

Industries with high barriers to entry​
A)​Pushes profits to normal returns
B)Increases the likelihood of firms entering the industry
C)Help firms sustain long term profits
D)​Increases the number of competitors

Quizplus · Accepted Answer

Industries with high barriers to entry limit the number of firms that can enter the market, which can help existing firms sustain long-term profits. This is because the high barriers make it difficult for new firms to enter the industry and compete with established players.

Industries with High Barriers to Entry​

Industries with High Barriers to Entry