High entry barriers lead to higher prices and higher levels of average profitability.

Name: High entry barriers lead to higher prices and higher levels of average profitability.
Brand: Quizplus
Rating: 4.8 (22 reviews)

Question

Quizplus · Accepted Answer

High entry barriers prevent new competitors from easily entering a market, reducing the competition and giving existing firms more pricing power. This often results in higher prices and higher levels of average profitability for the firms already in the market.

High Entry Barriers Lead to Higher Prices and Higher Levels