Are barriers to entering an industry the basis for monopoly?

Yes, barriers to entering an industry can be a significant basis for monopoly. When high barriers exist—such as substantial capital requirements, regulatory challenges, or control of essential resources—new competitors find it difficult to enter the market. This lack of competition allows a single firm to dominate, potentially leading to monopolistic practices, higher prices, and reduced innovation. Thus, barriers to entry play a crucial role in maintaining monopolistic structures.