Government policy is a potential barrier to entry because of
A) licensing requirements.
B) controlling access to raw materials.
C) product safety standards.
D) water pollution standards.
E) All of the above are issues of government policy.

Question

Quizplus · Accepted Answer

All of the above options can be issues of government policy that create barriers to entry for new firms. Licensing requirements can make it difficult for new businesses to enter certain industries. Government restrictions on access to raw materials can make it hard for new firms to obtain the resources they need to produce their products. Product safety standards can also be a challenge for new firms who may not have the resources to meet the strict requirements. Water pollution standards can create additional costs for new businesses, making it harder to compete with established firms. Therefore all of the above are issues of government policy that can act as barriers to entry.

Government Policy Is a Potential Barrier to Entry Because of