Obstacles that make it difficult or impossible for would-be producers to enter a market are known as:
A) Barriers to entry.
B) Monopoly profits.
C) Entry blockades.
D) Entry tariffs.

Question

Quizplus · Accepted Answer

Barriers to entry are obstacles that make it difficult for new producers to enter a market, such as high start-up costs, economies of scale, legal barriers, and brand loyalty. Monopoly profits refer to the profits earned by a sole supplier in a market due to the absence of competition, and entry blockades and entry tariffs are not commonly used terms in economics.

Obstacles That Make It Difficult or Impossible for Would-Be Producers