The more it is for other firms to enter a market the more likely it is that existing firms can make relatively high profits.

Name: The more it is for other firms to enter a market the more likely it is that existing firms can make relatively high profits.
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Question

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When barriers to entry are high, such as high start-up costs or strict government regulations, it becomes difficult for new firms to enter a market. This reduces competition and allows existing firms to maintain higher prices and earn higher profits.

The More It Is for Other Firms to Enter a Market