_____ would not be considered a barrier to entry in a market.
A)An absolute cost advantage
B)A copyright
C)A low Lerner index
D)A high level of product differentiation

Question

Quizplus · Accepted Answer

A low Lerner index indicates that a firm has less control over its prices and is typically associated with a more competitive market. Therefore, it would not be considered a barrier to entry.

The other options could be barriers to entry. An absolute cost advantage, for example, makes it difficult for new firms to compete on price. A copyright grants the holder exclusive rights to a particular creative work, which can prevent others from entering that market. A high level of product differentiation means that established firms have a loyal customer base or unique features that make it difficult for new entrants to gain customers.

_____ Would Not Be Considered a Barrier to Entry in a Market