According to the textbook, the most important barrier to entry is economies of scale.

Question

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Economies of scale refer to the cost advantages that a firm can achieve by increasing its level of production. This allows larger firms to produce goods at lower average cost than smaller firms, making it difficult for new firms to enter the market and compete. Thus, economies of scale are considered the most important barrier to entry.

According to the Textbook, the Most Important Barrier to Entry