Which of the following is NOT a barrier to entry that would allow a monopolist to keep potential competitors out of its market?
A) Significant economies of scale exist.
B) The market price of the product is too high.
C) The firm has a patent on the good or control over some resource required for the production of the good.
D) The firm has government authorization to be a monopoly.

Question

Quizplus · Accepted Answer

A high market price would attract potential competitors rather than keep them out. Significant economies of scale, patents or control over resources, and government authorization are all barriers to entry that can allow a monopolist to keep potential competitors out of its market.

Which of the Following Is NOT a Barrier to Entry