Three natural barriers to entry are
A) control of resources,patents and copyright law,and licensing.
B) economies of scale,problems raising capital,and control of resources.
C) problems raising capital,patents and copyright law,and licensing.
D) control of resources,patents and copyright law,and economies of scale.
E) control of resources,economies of scale,and licensing.

Question

Quizplus · Accepted Answer

Natural barriers to entry refer to obstacles that arise based on the inherent characteristics of an industry. Three such barriers include economies of scale, problems raising capital, and control of resources. Option B lists these three barriers correctly. Option A includes licensing, which is not a natural barrier but a legal requirement imposed by governments. Option C lists two natural barriers and one legal requirement. Option D includes economies of scale, patents and copyright law, and control of resources, omitting problems raising capital. Option E includes control of resources and licensing, but omits economies of scale and problems raising capital.

Three Natural Barriers to Entry Are