Question

One major barrier to entry under pure monopoly arises from Diseconomies of scale quizlet

Answer 1

One major barrier to entry under pure monopoly arises from the cost of the infrastructure that would be needed for production.

What is meant by barriers to entry?

This is the term that is used to show that the market structure is very difficult to break into.

This means that there would be only very few sellers of that particular product in the market.

What is diseconomies of scale?

This term is used in economics to refer to the fact that a business or a firm would have grown to be so large in such a way that the costs per unit would have to rise.

This is the stage where the economies to scale is no longer working for this particular firm. The production of goods and services would rise so much as per the unit cost of each item.

Types of these are

• infrastructure diseconomies
• Pollution diseconomies

Read more on barriers to entry here:

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