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What are common types of barriers to entry that can cause a monopoly? (Choose TWO.)
Suggested Answer: A, B
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In Global Economics for Managers, monopolies arise when barriers to entry prevent competitors from entering a market. Two common barriers are control of a key resource and economies of scale, making options A and B correct.
When a single firm owns a unique or scarce resource, competitors cannot produce the good without access to that resource. Economies of scale create monopolies when one firm can produce at a lower average cost than multiple firms due to high fixed costs.
Options C, D, and E promote competition rather than monopoly.
Thus, options A and B correctly identify monopoly-creating barriers to entry.
24 comments · newest first
SH
Sherill
2 days ago
Economies of scale make it hard for new firms to compete.
ET
Ethan
7 days ago
Agreed! A single firm owning a key resource is huge.
CA
Catalina
12 days ago
I think A and B are the best choices.
HY
Hyun
17 days ago
Plus, once a monopoly forms, it’s tough to break.
SC
Scarlet
23 days ago
Exactly! A and B really limit competition.
HA
Halina
28 days ago
Right! Barriers are about control, not info.
JO
Johnna
1 month ago
Yeah, perfect information doesn't create barriers.
SI
Simona
1 month ago
C and D seem less relevant to monopolies.
HY
Hyun
1 month ago
Economies of scale make it hard for new firms to compete.
SC
Scarlet
2 months ago
Agreed! A single firm owning a key resource is huge.
HA
Halina
2 months ago
I think A and B are the best choices.
NI
Nickie
2 months ago
Economies of scale can be super tricky for new businesses.
VA
Valentine
2 months ago
Free entry and exit? That sounds like the opposite of a monopoly!
JU
Justine
2 months ago
Wait, perfect information isn't a barrier, right?
MA
Marica
2 months ago
Totally agree, economies of scale really lock others out!
KR
Kristian
3 months ago
A single firm owning a key resource is a big one.
MA
Marti
3 months ago
I remember discussing barriers to entry in class, and A and B seem to fit. Perfect information doesn't really create a barrier, right?
HU
Huey
3 months ago
I practiced a similar question, and I think A is definitely one of the answers. But I'm confused about the second one; maybe B or C?
SO
Son
3 months ago
I'm not entirely sure, but I feel like economies of scale could be a barrier. It seems like larger firms can produce at lower costs, making it hard for new entrants.
AL
Alise
3 months ago
I think A and B might be the right answers. I remember studying how owning a key resource can really limit competition.
PR
Providencia
4 months ago
I practiced a question like this before, and I think A and B were the answers too. They seem to fit the definition of barriers to entry.
GR
Graciela
5 months ago
I feel like C and D could be distractions here. Perfect information doesn't really create a monopoly, right?
DI
Dino
5 months ago
I'm not entirely sure, but I remember something about economies of scale being a big deal in monopolies. Maybe B and A?
JU
Julian
5 months ago
I think A and B are the right answers. A single firm owning a key resource definitely sounds like a barrier.