Which of the Following Is Not a Technical Barrier to Entry

question 10

Multiple Choice

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

• A)A patent.
• B)Decreasing average cost.
• C)A low cost method of production known only by monopolist.
• D)Increasing returns to scale.

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Definitions:

Technology Improvement

Enhancements or advancements in technology that lead to more efficient processes or better quality outcomes.

MC

Stands for Marginal Cost, which is the cost incurred by producing one additional unit of a good or service.

Output

The quantity of goods or services produced within a given time period by a firm, sector, or economy.

U-Shaped Marginal Cost

A graphical representation of the cost incurred to produce one more unit of a good, which decreases at first due to increasing returns but eventually increases due to decreasing returns.