When the government introduces a licensing requirement for an industry,it reduces the barriers to entry for the industry.

Question

Quizplus · Accepted Answer

The introduction of a licensing requirement actually increases the barriers to entry for the industry, as it creates a new expense and regulatory burden that new businesses must navigate in order to operate legally. This can create an advantage for established companies that already have the resources to comply with the licensing requirements.

When the Government Introduces a Licensing Requirement for an Industry,it