A barrier to entry
A) makes it illegal for firms to enter the industry.
B) can be thought of as unrelated to monopoly.
C) slows or even prevents entry into a market.
D) usually takes the form of a cartel.

Question

Quizplus · Accepted Answer

A barrier to entry slows or even prevents entry into a market, which can create a situation of limited competition or even monopoly. A barrier to entry does not necessarily make it illegal for firms to enter the industry, nor does it have to take the form of a cartel. Therefore, options A and D are incorrect. While a barrier to entry can be related to monopoly, it is not unrelated, so option B is also incorrect.

A Barrier to Entry