An example of a government policy barrier to entry would be a situation in which the Antitrust Division of the Department of Justice disallows a merger because it creates a firm that is too dominant and would thus create unfair competition.

Question

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When the Antitrust Division of the Department of Justice disallows a merger, it is a government policy barrier to entry as it prevents a new firm from entering the market and competing with the dominant firm.

An Example of a Government Policy Barrier to Entry Would