Which of the Following Is Not a Barrier to Entry

question 2

Multiple Choice

Which of the following is not a barrier to entry in a monopolized market?

• A) A single firm is very large.
• B) The government gives a single firm the exclusive right to produce some good.
• C) The costs of production make a single producer more efficient than a large number of producers.
• D) A key resource is owned by a single firm.

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Definitions:

Hostile Takeover

An acquisition attempt by a company or individual against the target company's wishes.

Cash Bidding Price

The price offered in cash during an auction or bidding process for an asset or item.

Market Price

The market price at which you can currently buy or sell an asset or service.

Interest Tax Savings

The reduction in tax payments resulting from the deduction of interest payments on debt from taxable income.