Asked by Hanna Watkins on Jun 11, 2024
Verified
One major barrier to entry under pure monopoly arises from
A) the availability of close substitutes for a product.
B) ownership of essential resources.
C) the price taking ability of the firm.
D) diseconomies of scale.
Pure Monopoly
A market structure characterized by a single seller selling a unique product with no close substitutes.
Barrier To Entry
Anything that artificially prevents the entry of firms into an industry.
Ownership Of Essential Resources
Refers to the control and claim over crucial resources needed for production, such as land, water, and minerals.
- Investigate the hindrances to market entry that allow monopolies to achieve prolonged economic advantages.
Verified Answer
JT
Jazbeth TrevinoJun 14, 2024
Final Answer :
B
Explanation :
Ownership of essential resources is a major barrier to entry in a pure monopoly because it prevents other firms from accessing the materials they need to compete in the market.
Learning Objectives
- Investigate the hindrances to market entry that allow monopolies to achieve prolonged economic advantages.
Related questions
Large Barriers to Entry Are One Reason That a Monopoly ...
What Do Economies of Scale,the Ownership of Essential Raw Materials,and ...
Which of the Following Is a Characteristic of Pure Monopoly ...
One Advantage of ______________ Is Being Able to Set the ...
A Monopoly Can Be Losing Money in the ___________,But Not ...