Which of the Following Factors Is Not a Barrier Limiting

question 4

Multiple Choice

Which of the following factors is not a barrier limiting the entry of potential competitors into a market?

• A) legally enforced patent rights
• B) an inelastic demand for a product
• C) economies of scale
• D) ownership of a vital resource

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Definitions:

Input Prices

The costs associated with the purchase of the factors of production, including wages for labor, prices for raw materials, and capital costs.

Average Variable Cost

Average variable cost is the total variable cost divided by the quantity of output produced, showing the cost of producing each unit excluding fixed costs.

Short-Run Marginal Cost

The cost incurred by producing one additional unit of a product in the short term where at least one input is fixed.

Renting

The act of paying for the use of something, typically property, land, or a vehicle, owned by another person or company, over a specific period.