Which of the following is an example of a legal barrier to entry?
A)a public franchise
B)a patent
C)exclusive ownership of a scarce resource
D)a and b
E)a, b, and c

Question

Quizplus · Accepted Answer

Legal barriers to entry are restrictions that prevent new competitors from easily entering an industry or area of business. A public franchise (like a utility company) and a patent (which gives exclusive rights to inventions) are examples of legal barriers. Exclusive ownership of a scarce resource, while it can be a barrier to entry, is not specifically a legal barrier but rather an economic one.

Which of the Following Is an Example of a Legal