All else constant,as the barriers to entry into a particular market increase,so will the ability of firms in that market to earn above-average profits.

Question

Quizplus · Accepted Answer

When the barriers to entry are high, it becomes difficult for new firms to enter the market, thus reducing competition. With reduced competition, existing firms can earn above-average profits without fear of losing business to new entrants.

All Else Constant,as the Barriers to Entry into a Particular