Which of the following is not a barrier to entry that typically results in monopoly?

CA Foundation · Business Economics · MTP · January 2025
Which of the following is not a barrier to entry that typically results in monopoly?
(A) A. The firm controls the entire supply of a raw material.
(B) B. Production of the industry's product is subject to economies of scale over a broad range of output.
(C) C. Production of the industry's product requires a large initial capital investment.
(D) D. The firm holds an exclusive government franchise.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Production of the industry's product is subject to economies of scale over a broad range of output.

Topics: Price Determination in Different Markets

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