All of the following are considered a barrier to entry into a market EXCEPT
A) ownership of resources without close substitutes.
B) when firms can only earn a normal rate of return in a market.
C) economies of scale.
D) governmental restrictions on a firm's ability enter a market.

Question

Quizplus · Accepted Answer

When firms can only earn a normal rate of return in a market does not act as a barrier to entry. A normal rate of return means that the firm is earning enough to cover all of its costs, including the opportunity cost of the owner's time and resources. This does not pose a significant obstacle for new firms entering the market. In contrast, ownership of resources without close substitutes, economies of scale, and governmental restrictions can all make it difficult for new firms to enter a market.

All of the Following Are Considered a Barrier to Entry