Which one of the following is an example of a natural barrier to entry of new firms into an industry?
A)licensing of professions
B)economies of scale
C)issuing a patent
D)a public franchise
E)ownership of a significant portion of a key resource

Question

Quizplus · Accepted Answer

Economies of scale are a natural barrier to entry because they allow established firms to produce at a lower average cost due to their size, making it difficult for new entrants to compete.

Which One of the Following Is an Example of a Natural