Governments can do little to erect barriers to entry in an industry.

Question

Quizplus · Accepted Answer

Governments have the power to erect barriers to entry in certain industries, such as through licensing requirements or regulations that raise the cost of entry. Examples include the barriers to entry for taxi companies, which often require extensive licensing and regulation, or for pharmaceutical manufacturers, which need to meet strict regulatory standards to bring products to market. However, in many cases, governments may also try to remove barriers to encourage competition and innovation in industries.

Governments Can Do Little to Erect Barriers to Entry in an Industry