Entry barriers can be the result of:
A)inelastic demand
B)legal obstacles
C)perfectly competitive markets
D)the availability of close substitutes
E)perfectly elastic demand

Question

Quizplus · Accepted Answer

Legal obstacles such as patents, licenses, and regulations can create entry barriers that prevent new firms from entering a market. Inelastic demand, perfectly competitive markets, and perfectly elastic demand do not necessarily create entry barriers, while the availability of close substitutes may make it easier for new firms to enter the market.

Entry Barriers Can Be the Result Of