Asked by
JAQUELINE MELENDEZ SOLANO
on Dec 12, 2024
Verified
When economists talk about a barrier to entry, they are referring to
A) a factor that makes it difficult for potential competitors to enter a market.
B) the opportunity cost of equity capital that is incurred by a firm producing at minimum total cost.
C) the downward-sloping portion of the long-run average total cost curve.
D) the declining output experienced as additional units of a variable input are used with a given amount of a fixed input.
Barrier To Entry
Economic, procedural, regulatory, or technological factors that obstruct or restrict the ability of new competitors to enter and operate within a market or industry.
Market Entry
The process or strategy by which a company enters a new market or industry.
Average Cost
The total cost of production divided by the number of units produced, often used to determine the efficiency of production.
- Acknowledge the critical role that entry obstacles play in forming market competition dynamics and the influence of state regulation on natural monopolies.
Verified Answer
GU
Learning Objectives
- Acknowledge the critical role that entry obstacles play in forming market competition dynamics and the influence of state regulation on natural monopolies.