Asked by Abo Yousef Khaleel on May 31, 2024
Verified
Which factor is NOT a barrier to entry?
A) control of scarce resources
B) economies of scale
C) patents and copyrights
D) diseconomies of scale
Diseconomies Of Scale
The phenomenon where production costs per unit increase as a firm or production process increases in size, often due to inefficiencies.
- Distinguish and appreciate the hindrances to market entry in monopolies.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
D
Explanation :
Diseconomies of scale actually make it easier for new firms to enter the market because larger firms may become inefficient and have higher costs, making it easier for smaller firms to compete. Control of scarce resources, economies of scale, and patents/copyrights are all examples of barriers to entry.
Learning Objectives
- Distinguish and appreciate the hindrances to market entry in monopolies.