Natural barriers to entry arise when,over the relevant range of output,there
A) are diseconomies of scale.
B) are constant returns to scale.
C) are several firms who produce at the lowest average cost.
D) are economies of scale.
E) is one firm that owns a key natural resource.

Question

Quizplus · Accepted Answer

Natural barriers to entry occur when there are economies of scale, allowing a single firm to produce at a lower average cost than potential competitors, deterring new entrants.

Natural Barriers to Entry Arise When,over the Relevant Range of Output,there