Barriers to entry refer to
A)pure competition from many new firms.
B)the likelihood of new entrants.
C)monopolistic competition.
D)business practices that make it difficult for new firms to enter the market.
E)a megopoly.

Question

Quizplus · Accepted Answer

Barriers to entry refer to business practices or conditions that make it difficult for new firms to enter a market. These can include things like high startup costs, economies of scale that favor larger firms, complex regulations, limited access to distribution channels or important resources, and established brand loyalty among consumers. The presence of barriers to entry can create oligopolies or monopolies, since it limits the number of firms in the market and reduces competition.

Barriers to Entry Refer to