Which of the following can be a barrier to entry?
i.ownership of a necessary input
ii.requiring a government license
iii.large diseconomies of scale
A) i only
B) ii only
C) i and iii
D) i and ii
E) i, ii, and iii

Question

Quizplus · Accepted Answer

Ownership of a necessary input and requiring a government license are both examples of legal and regulatory barriers to entry. Large diseconomies of scale can make it difficult for new firms to enter a market and compete with established firms, giving the existing firms an advantage, this is an example of a technical barrier.

Which of the Following Can Be a Barrier to Entry