If barriers to entry are high and products are somewhat differentiated,then
A) the industry is probably perfectly competitive.
B) the industry is probably monopolistically competitive.
C) the industry is probably a differentiated monopsony.
D) economic profit might be sustainable.
E) the situation cannot exist.

Question

Quizplus · Accepted Answer

High barriers to entry and product differentiation can allow firms to maintain economic profits over time, as new competitors are less likely to enter the market and erode profits.

If Barriers to Entry Are High and Products Are Somewhat