please answer this quickly I need it ASAP Which of the follo

please answer this quickly I need it ASAP!

Which of the following factors is most likely to restrict the entry of potential competitors into a market? O all of the entries listed here O a lack of patent protection for the new entrant O elastic market demand curve for the product O High Fixed Cost versus Small Margins

Solution

Correct Answer:

D

A high fixed cost, will deter the firms and lower profit margin will also discourage the firms from entering into the market. It is the reason, that natural monopoly is created in the market due to higher fixed cost level.