BWCT is a mining company that operates the world's exclusive mining site to harvest a new metal. Assuming it is a monopoly, which of the following statements is least likely concerning entry and exit in this market currently?
a. There is predatory price cutting being done by BWCT to keep new companies out of mining.
b. There is tight control over a key resource by BWCT.
c. There is an economy of scale at work making it cheap to produce more products.
d. There are government regulations enabling firms to enter the market easily.

Answer:

D; There are government regulations enabling firms to enter the market easily

Explanation:

Assuming BWCT as a monopoly,  statements is least likely concerning entry and exit in this market currently there are government regulations enabling firms to enter the market easily. Thus the correct answer is D.

Monopoly refers to a single rule of the seller in the market. This is a type of busines structure where there are single busines that control the ownership of the market and restrict entries to give competition.

This monopoly structure of business led to high barriers to entry as the complete market is controlled by a single business entity which restricts others to enter. As there is no competition in the market the firms involved in monopoly gain more profit maximization.

The discrimination of price is also controlled as there is a single seller who sold the products and there are many buyers. So the seller can change the price of the product at any time.

Therefore, option D There are government regulations enabling firms to enter the market easily is the appropriate answer.

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