A barrier to entry is
A) a necessary condition for perfect competition.
B) the result of highly elastic demand.
C) a brick wall that a firm places around its corporate headquarters.
D) a natural or legal impediment that makes it difficult for new firms to enter a market.

Question

Quizplus · Accepted Answer

Barriers to entry are obstacles that make it difficult for new competitors to enter a market. These can include things like high startup costs, strict regulations, or strong brand loyalty for existing companies, rather than physical barriers or market conditions like perfect competition or elastic demand.

A Barrier to Entry Is