Which of the following is NOT a government action that results in a barrier to entry in a product market?
A)granting a patent on a product
B)requiring that advertising not make false claims
C)imposing regulations that increase start-up costs for new companies
D)issuing compulsory licenses to produce the product

Question

Quizplus · Accepted Answer

Requiring that advertising not make false claims does not result in a barrier to entry in a product market as it is a consumer protection regulation, not a regulation that limits competition or entry into the market. A, C, and D all result in barriers to entry as they involve government intervention that restricts competition in some way.

Which of the Following Is NOT a Government Action That