A firm's intellectual property can act as an entry barrier for other firms.

Question

Quizplus · Accepted Answer

Intellectual property, such as patents, trademarks, and copyrights, can prevent other firms from entering a particular market or competing with the original firm. This is because the firm with the intellectual property has the exclusive right to use, produce, or sell the protected asset, and other firms may have to pay licensing fees or face legal action for infringement if they want to enter the market or develop similar products.

A Firm's Intellectual Property Can Act as an Entry Barrier