Which of the following can serve as a barrier to entry?
A) legal restrictions
B) patents
C) control of scarce inputs or resources
D) all of the above

Question

Quizplus · Accepted Answer

All of the choices - legal restrictions, patents, and control of scarce inputs or resources - can serve as barriers to entry. Legal restrictions may include high licensing fees or strict regulations that make it difficult for new firms to enter a market. Patents can prevent other firms from using a particular technology or idea, giving the patent holder a monopoly. Control of scarce inputs or resources can limit the ability of new firms to produce or offer a product, making it more difficult to compete with established firms.

Which of the Following Can Serve as a Barrier to Entry