The barrier to entry that might be faced by a firm from the options provided is licensing requirements. Licensing requirements can create obstacles for new firms trying to enter a market, as they may need to obtain specific licenses or permits, which can be costly, time-consuming, or require meeting certain regulatory standards.
The other options do not represent barriers to entry:
- Shortage refers to a situation where demand exceeds supply, not a barrier to entering a market.
- Low input prices would generally be favorable for new firms rather than a barrier.
- A high market equilibrium price might present an opportunity for profits but does not inherently block entry into the market.
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