In which of the following industry structures is the entry of new firms the most difficult?
A) Pure monopoly.
B) Oligopoly.
C) Monopolistic competition.
D) Pure competition.

Question

Quizplus · Accepted Answer

In pure monopoly, there is only one supplier in the market with no close substitutes. The entry barriers are very high due to the control over resources or technology, legal barriers, and economies of scale. Hence, the entry of new firms is the most difficult in pure monopoly.

In Which of the Following Industry Structures Is the Entry