Which of the following prevents potential competitors from entering a monopolist's market?
A)legal restrictions
B)diseconomies of scale
C)product differentiation
D)stable market demand
E)rising marginal cost

Question

Quizplus · Accepted Answer

Legal restrictions, such as patents, licenses or government regulations, can prevent potential competitors from entering a monopolist's market by limiting the number of firms that are allowed to operate in the market. This can provide the monopolist with a barrier to entry and a monopoly power in the market.

Which of the Following Prevents Potential Competitors from Entering a Monopolist's