With an annual production of 100,000 metric tons, steelworld inc., is one of the major producers of steel in its country. when the government of this country recently hiked the minimum wage for labor, the media predicted a considerable decline in national production. as one of the core industries in the economy, steel production was expected to be hit particularly badly. although the supply of steel by steelworld did decline, the fall was much lower than anticipated.
what is true, explain this phenomenon?

"in the electricity industry, low average total costs are obtained only through large-scale production. in other words, the initial cost of setting up all the necessary wiring makes it risky and, most likely, unprofitable for competitors to enter the market. throughout much of the 20th century, many people viewed south africa’s de beers group as a monopoly because it controlled a large percentage of diamond production and sales. patents are granted to inventors of a product or process for a certain number of years. the reason for this is to encourage innovation in the economy. without the existence of patents, it is argued, research and development for improved electronics is unlikely to take place, since there’s nothing preventing another firm from stealing the idea, copying the product, and producing it without incurring the devel opment costs."which of the following best explains the barriers to entry that exist in this scenario? increasing returns to scale legal barriers exclusive ownership of a necessary resource