Which of the following government policies would create a direct barrier to entry for new sellers in a market?
A)taxing business profits with a progressive tax
B)banning switching costs to protect consumers
C)ensuring that all sellers have equal access to inputs
D)granting a patent to the developer of a new product

Question

Quizplus · Accepted Answer

By granting a patent to the developer of a new product, the government is giving the developer exclusive rights to produce and sell that product for a certain period of time, thereby creating a direct barrier to entry for new sellers in that market. This is because they will not be able to produce or sell the same product during the patent period without facing legal consequences.

Which of the Following Government Policies Would Create a Direct