ABC Corporation holds a patent on a drug that prevents frowning. This is an example of a _____ barrier to entry.

Name: ABC Corporation holds a patent on a drug that prevents frowning. This is an example of a _____ barrier to entry.
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Question

Quizplus · Accepted Answer

Holding a patent on a drug creates a high barrier to entry because it grants the company exclusive rights to produce and sell the drug, preventing other companies from entering the market with the same or a similar product.

ABC Corporation Holds a Patent on a Drug That Prevents