Which of the following is not true about barriers to entry?
A) They allow a firm to control or restrict the amount of goods supplied in the market.
B) They allow a firm to earn economic profit in the long run.
C) They cause price to be lower and output higher than if they didn't exist.
D) They make it difficult for potential producers to enter a given market.

Question

Quizplus · Accepted Answer

Barriers to entry typically result in higher prices and lower output, as they limit the number of competitors in the market. Option C is therefore not true. Options A, B, and D are all true statements about barriers to entry.

Which of the Following Is Not True About Barriers to Entry