Which one of the following is not a possible barrier to entry high enough to keep competing firms out of a monopoly industry?
A)The monopoly firm has control of a key resource necessary to produce a good.
B)There are important network externalities in supplying a good or service.
C)large economies of scale that result in a natural monopoly
D)a high concentration ratio

Question

Quizplus · Accepted Answer

A high concentration ratio refers to a market with a small number of large firms dominating the industry. While it may make it difficult for new firms to enter, it is not necessarily a barrier high enough to keep them out. The other options (A, B, and C) are all significant barriers to entry that can prevent competition in a monopoly industry.

Which One of the Following Is Not a Possible Barrier