The government can limit entry to an industry or market through strict regulation, licensing requirements, and by limiting access to raw materials via laws or high taxes and to certain locations by means of zoning restrictions.

Question

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Governments can control or limit entry into specific industries or markets through various regulatory mechanisms such as imposing strict licensing requirements, enacting laws that restrict access to essential raw materials (often through high taxation), and implementing zoning restrictions that limit where businesses can operate. These measures are often used to protect public health and safety, preserve environmental quality, or maintain fair market competition.

The Government Can Limit Entry to an Industry or Market