Which of the following is not a barrier to entry?

Question

Quizplus · Accepted Answer

An inelastic demand curve does not prevent new firms from entering a market. It simply means that consumers are less responsive to changes in price. B, C, and D are all examples of barriers to entry that can make it difficult or impossible for new firms to enter a market. Economies of scale allow established firms to produce at a lower cost per unit, making it difficult for new firms to compete. Ownership of a key input can give an established firm a competitive advantage, while a patent can give an established firm exclusive rights to produce a certain product or use a certain process.

Which of the Following Is Not a Barrier to Entry