Which of the following prevents potential competitors from entering a monopolized market?
A)Legal restrictions
B)Diseconomies of scale
C)Product differentiation
D)Stable market demand
E)An abundant supply of resources

Question

Which of the following prevents potential competitors from entering a monopolized market?​
A)Legal restrictions
B)Diseconomies of scale
C)Product differentiation
D)Stable market demand
E)An abundant supply of resources

Quizplus · Accepted Answer

Legal restrictions such as patents, copyrights, and government licenses can prevent potential competitors from entering a monopolized market. These restrictions give the monopolist exclusive rights to produce and sell a particular product or service, making it difficult for competitors to enter the market and gain market share. This is often seen in industries such as pharmaceuticals, where drug patents can provide a monopoly on a particular medication for a set period of time.

Which of the Following Prevents Potential Competitors from Entering a Monopolized