Question:

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

A.

The firm controls the entire supply of a 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

D.

The firm holds an exclusive government franchise

Answer» c. Production of the industry\s product requires a large initial capital investment