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Commerce · Q1226

Economics

Graduate and Post Graduate · Commerce · question 1226

Q1226

Which of the following is a barrier to entry that typically results in a monopoly?

A.
The firm controls the entire supply of raw material
B.
Production of the industry's product is subject to economies of scale over a broad range of output
C.
Production of the industry's product requires a large initial capital investment
Answer
D.
The firm holds an exclusive government franchise

Answer: Option C

Solution

Answer: Option C
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