Which of the following is not a barrier to entry in a monopolized market ?
Correct answer: A. A single firm is very large
- A. A single firm is very large
- B. The government gives a single firm the exclusive right to produce some good
- C. The costs of production make a single producer more efficient than a large number of productions
- D. A key resource is owned by a single firm
Explanation
A single firm's large size is usually a result of monopoly, not a barrier that prevents entry. Exclusive government rights, control of a key resource, and economies of scale can keep new firms out.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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