question archive Which is not a barrier to entry that helps in establishing a monopoly? A
Which is not a barrier to entry that helps in establishing a monopoly? A
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Which is not a barrier to entry that helps in establishing a monopoly?
A. A patent on a new invention.
B. Control of a natural resource.
C. A monopolist sells a product superior to all competition.
D. Large economies of scale making it unreasonable for new firms to enter the market.
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The correct answer is C. A monopolist sells a product superior to all competition.
Even if a monopolist sells a product superior to all competition, new firms can enter the market. Such firms can either look to develop a product of high quality themselves or sell a poorer quality product targeting a different segment of the market.
