Barriers to entry
A) usually result in pure competition.
B) can result from government regulation.
C) exist in economic theory but not in the real world.
D) are typically the result of wrongdoing on the part of a firm.

Question

Quizplus · Accepted Answer

Barriers to entry can result from government regulation, such as obtaining licenses or meeting certain standards, that can make it difficult or costly for new competitors to enter a market. The other options are incorrect because barriers to entry do not necessarily result in pure competition, may exist in the real world, and are not always the result of wrongdoing by a firm.

Barriers to Entry