Which of the following markets has a barrier to entry?
A.An aluminum company owns all bauxite mines comma an essential input.
An aluminum company owns all bauxite mines comma an essential input.
B.
Stan's Garbage Company runs the only trash collection service in town.
C.
There are already many fast food restaurants in the City of Buffalo.
D.
Gold can only be mined in certain places in the world.
A. An aluminum company owning all bauxite mines, an essential input, creates a barrier to entry as it effectively controls the supply of the input material.
B. Stan's Garbage Company running the only trash collection service in town creates a barrier to entry in the trash collection market.
C. There being many fast food restaurants in the City of Buffalo does not create a barrier to entry as new fast food restaurants can still enter the market.
D. Gold being mined only in certain places in the world does not create a barrier to entry as companies can still obtain gold from those places or explore alternative sources.