Barriers to entry include all of the following except
A)exclusive ownership of a scarce resource.
B)patents.
C)public franchises.
D)diseconomies of scale.
E)government licenses.

Question

Quizplus · Accepted Answer

Diseconomies of scale are not a barrier to entry; they refer to a situation where costs per unit increase as a firm's output increases, which could actually discourage a firm from becoming too large, rather than preventing new firms from entering the market. In contrast, exclusive ownership of scarce resources, patents, public franchises, and government licenses can all prevent or limit new competitors from entering a market.

Barriers to Entry Include All of the Following Except