A Barrier to Entry Is

question 349

Multiple Choice

A barrier to entry is

• A) a term used to explain why monopolies always make economic profits.
• B) a restriction on the profits that a monopoly can make.
• C) the situation when the government produces a good instead of relying on private firms to produce the good.
• D) a restriction on starting a business.

---

Definitions:

Portfolio P

This term typically represents a specific set of investments held by an individual or organization, potentially including stocks, bonds, and other assets.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account its risk level.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, representing the interest an investor would expect from an absolutely risk-free investment over a specified period.

GDP

Gross Domestic Product, a measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.