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When the Government Imposes a Barrier to Entry in a Market

Question 144

Multiple Choice

When the government imposes a barrier to entry in a market,


A) more resources will be wasted by firms attempting to secure and maintain market power.
B) the options available to consumers will increase in the protected market.
C) allocative efficiency will be improved by the reduction of wasteful competition.
D) consumers will be better able to direct the smaller number of producers to serve their interests.

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