What are common types of barriers to entry that can cause a monopoly? Choose two.

While acquiring competitors can lead to a monopoly, it is not a barrier to entry in itself. This action is more of a strategy to consolidate market power rather than a systemic barrier that prevents new firms from entering the market. New entrants may still appear if the market conditions are favorable or if regulatory bodies do not prohibit such mergers.

Although such regulations can limit foreign competition, they do not inherently create a monopoly within the domestic market. Domestic firms may still compete amongst themselves, and the absence of foreign firms does not automatically grant a single firm monopolistic control over the market.

While employee unions can influence market dynamics and negotiate for better wages and working conditions, they do not function as a barrier to entry. Instead, they represent a collective bargaining power within the labor force, impacting how firms operate but not restricting new firms from entering the market.

Elastic demand curves indicate how sensitive consumers are to price changes, but they do not create barriers to entry. In fact, high elasticity may encourage new firms to enter the market, as they can offer lower prices to attract consumers. Thus, elastic demand does not support the establishment of monopolies.