Which of the following are barriers to entry that can give rise to a monopoly?
(i) a patent giving exclusive right to manufacture a new electronic device
(ii) a single firm buys all the rights to mine iron ore in Australia
(iii) a single firm can produce at lower cost than several firms
A)(i) only
B)(i) and (ii) only
C)(ii) and (iii) only
D)(i), (ii), and (iii)

Question

Quizplus · Accepted Answer

All three options are barriers to entry. A patent (i) legally prevents other firms from producing a patented product. If a single firm controls all mining rights for a resource like iron ore in Australia (ii), it effectively blocks others from entering the market. Economies of scale (iii) mean a single firm can produce at a lower cost than multiple firms, deterring new entrants due to cost disadvantage.

Which of the Following Are Barriers to Entry That Can