Which of the following could create a barrier to entry?
A) Large capital requirements.
B) Patents.
C) A market dominated by two well established firms each with substantial market share.
D) All of the above could be a barrier to entry.

Question

Quizplus · Accepted Answer

All of the options listed can create barriers to entry for new competitors. Large capital requirements make it difficult for new entrants to finance the startup costs. Patents protect innovations, preventing others from using them without permission. A market dominated by a few firms can deter new entrants due to the established firms' control over market share and resources.

Which of the Following Could Create a Barrier to Entry