Which type of barrier to entry allows an electric company to maintain a monopoly over the production of electricity?

A) a patent
B) economies of scale
C) diseconomies of scale
D) ownership of a scarce factor of production

Barrier To Entry

Barriers to entry are obstacles or impediments that make it difficult for new entrants to enter a particular market, such as high start-up costs, strict regulations, or strong brand loyalty among consumers.

Economies Of Scale

Economies of scale are cost advantages reaped by companies when production becomes efficient, as the cost per unit of output decreases with the increase in scale of operation.