Which of the following can serve as an entry barrier?
A)legal restrictions
B)patents
C)control of scarce resources or inputs
D)All of the above are correct.

Question

Which of the following can serve as an entry barrier?
A)legal restrictions 
B)patents 
C)control of scarce resources or inputs 
D)All of the above are correct.

Quizplus · Accepted Answer

All of the options listed can serve as entry barriers. Legal restrictions can make it difficult or even impossible for new firms to enter a market. Patents provide legal protection to companies for their inventions, which can prevent competitors from entering the market with a similar product. Control of scarce resources or inputs can make it difficult for new firms to obtain the resources needed to compete effectively. Therefore, all the options can function as effective entry barriers.

Which of the Following Can Serve as an Entry Barrier