Two government-created barriers to entry are
A) licensing and economies of scale.
B) economies of scale and patent system/copyright law.
C) licensing and patent system/copyright law.
D) economies of scale and control of resources.
E) licensing and control of resources.

Question

Quizplus · Accepted Answer

Licensing and the patent system/copyright law are both created by the government to limit competition and entry into certain industries or markets. Licensing is a requirement for businesses to obtain a specific permit or certification to operate in a certain industry, which can be costly and time-consuming. The patent system and copyright law allow businesses to have exclusive rights to their products or ideas, preventing others from entering the market with similar products or ideas. These barriers to entry can protect established businesses from competition and limit the number of new firms entering the market.

Two Government-Created Barriers to Entry Are