Question

Ash is the preferred wood to be used in the production of baseball bats.If a company was to buy the rights to harvesting the ash trees out of all the forests in North America,which of the following barriers of entry has this company created?

A) control of resources
B) problems raising capital
C) economies of scale
D) licensing
E) patents and copyright law

Answer 1

I think that the answer would either be C B or A

Answer 2

Answer: A) control of resources

Step-by-step explanation:

One of the ways that Monopolies create barriers to entry is by controlling the natural resource. This question is a an example of that happening.

By controlling the natural resource, the monopoly can decide who it wants to sell to and at what price. It could even decide not to sell the resource at all which would make it the sole producer of the goods derived from the resource which would effectively force every competitor out of the market as they would be unable to produce anything.