A barrier to entry is
A) a term used to explain why monopolies always make economic profits.
B) a restriction on the profits that a monopoly can make.
C) the situation when the government produces a good instead of relying on private firms to produce the good.
D) a restriction on starting a business.

Question

Quizplus · Accepted Answer

A barrier to entry refers to any obstacle that prevents or restricts firms from entering an industry or market, such as high start-up costs, government regulations, or limited access to resources. It is a restriction on starting a business or competing in the market.

A Barrier to Entry Is