Which of the Following Could Form a Barrier to Entry

question 9

Multiple Choice

Which of the following could form a barrier to entry in a market?

• A) Normal economic profits.
• B) Diseconomies of scale.
• C) Relatively elastic demand for the good.
• D) High sunk costs.

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Definitions:

Temporary Basis

Pertaining to a limited period of time; not permanent or enduring.

Group Processors

Individuals or mechanisms that manage, direct, or facilitate the work within a group towards achieving collective goals.

Interlocking Networks

A pattern of overlapping relationships and connections among people or organizations, which can facilitate information flow and collaboration.

Monopolistically Competitive

A type of market structure characterized by many sellers offering differentiated products, leading to competition based on product features, price, and quality.