Barriers to entry do not occur when:
A)economies of scale in production exist in an industry.
B)the government requires a professional license or franchise agreement.
C)the firm that introduces a product is granted a patent.
D)a firm controls a scarce resource.
E)diseconomies of scale in production exist in an industry.

Question

Quizplus · Accepted Answer

Diseconomies of scale in production mean that as a firm grows, its costs per unit increase, which does not prevent new firms from entering the industry.

Barriers to Entry Do Not Occur When