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Home › Bihar Board Class 12 (Arts) › Economics › Forms of Market and Price Determination › Heavy capital needs that limit the number of fir…

Heavy capital needs that limit the number of firms act as a:

ASubsidy to entrants
BBarrier to entry
CTax on consumers
DPrice ceiling
Answer & Solution
Correct answer: B. Barrier to entry
Large investments, such as in research or sunk costs, keep potential entrants out of the industry.
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