Which of the Following Is a Barrier to Entry for a Monopoly

question 151

Multiple Choice

Which of the following is a barrier to entry for a monopoly?

• A) a patent
• B) severe diseconomies of scale
• C) close substitutes for the good or service exist
• D) All of the above answers are correct.

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Definitions:

Pro Forma

A method of calculating financial results using hypothetical income and expenses, often used for planning or projective statements.

Financial Planning

The process of framing objectives, policies, procedures, budgets, and financial forecasts for a specific time frame.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and profits while maintaining a consistent return on equity and without raising additional equity financing.

External Financing

Funds raised from outside the business, e.g., through borrowing or issuing equity.