Barriers to entry are used to
A) enable a firm to exercise control over the price of its product.
B) prevent other firms from entering the market.
C) allow the firm to earn economic profits.
D) all of the above

Question

Quizplus · Accepted Answer

Barriers to entry serve multiple purposes: they enable a firm to have control over its product pricing, prevent new competitors from entering the market, and consequently allow the firm to earn economic profits by reducing competition.

Barriers to Entry Are Used to