Which of the following is a barrier to entry in a monopoly market?
A) Economic profit of the monopolist.
B) Antitrust laws.
C) A rising long-run average total cost curve.
D) Economies of scale.

Question

Quizplus · Accepted Answer

Economies of scale act as a barrier to entry in a monopoly market because they allow the monopolist to produce at a lower average cost than potential new entrants, making it difficult for these new entrants to compete.

Which of the Following Is a Barrier to Entry in a Monopoly