Which of the Following Describes a Barrier to Entry

question 112

Multiple Choice

Which of the following describes a barrier to entry?

• A) Something that establishes a barrier to expanding output.
• B) Firms are legally prohibited from exiting the market in order to enter another market.
• C) A government regulation that bars a monopoly from earning an economic profit.
• D) Firms already in the market incurring economic losses so that no new firm wants to enter the market.
• E) Anything that protects a firm from the arrival of new competitors.

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Definitions:

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