Asked by Hanna Watkins on Jun 11, 2024
Verified
One major barrier to entry under pure monopoly arises from
A) the availability of close substitutes for a product.
B) ownership of essential resources.
C) the price taking ability of the firm.
D) diseconomies of scale.
Pure Monopoly
A market structure characterized by a single seller selling a unique product with no close substitutes.
Barrier To Entry
Anything that artificially prevents the entry of firms into an industry.
Ownership Of Essential Resources
Refers to the control and claim over crucial resources needed for production, such as land, water, and minerals.
- Investigate the hindrances to market entry that allow monopolies to achieve prolonged economic advantages.
Verified Answer
JT
Jazbeth TrevinoJun 14, 2024
Final Answer :
B
Explanation :
Ownership of essential resources is a major barrier to entry in a pure monopoly because it prevents other firms from accessing the materials they need to compete in the market.
Learning Objectives
- Investigate the hindrances to market entry that allow monopolies to achieve prolonged economic advantages.
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