Which factor is NOT a barrier to entry?
A)control of an input essential for production
B)government-set barriers such as patents
C)a ban on certain kinds of advertising
D)the existence of significant economies of scale

Question

Quizplus · Accepted Answer

Bans on certain kinds of advertising are not considered barriers to entry because they do not prevent a new firm from entering the market. While advertising may help established firms maintain their market power, it does not prevent new firms from entering and competing on equal footing. Control of an essential input, government-set barriers such as patents, and significant economies of scale are all examples of barriers to entry because they make it more difficult for new firms to enter the market and compete with established firms.

Which Factor Is NOT a Barrier to Entry