All of the following government actions create barriers to entry EXCEPT
A)limiting the number of airlines that may operate at an airport.
B)granting a patent to a drug company.
C)requiring a pizza parlor to get a business license.
D)giving a power company exclusive use of the city's transmission lines.

Question

Quizplus · Accepted Answer

Requiring a pizza parlor to get a business license is a regulation that applies equally to all businesses and does not create a barrier to entry. The other options limit competition by creating exclusivity or restricting the number of participants in a market.

All of the Following Government Actions Create Barriers to Entry