If Happy Avocados successfully lobbies the government to make entry of new firms into the ready- made guacamole market difficult, this is an example of ______.

Question

Quizplus · Accepted Answer

Erecting a barrier to entry refers to the act of making it difficult for new firms to enter a market, giving established firms an advantage. In this scenario, Happy Avocados is using its influence to make it difficult for new firms to enter the ready-made guacamole market, which limits competition and gives them an advantage.

If Happy Avocados Successfully Lobbies the Government to Make Entry