When the government eliminates artificial barriers to entry

Name: When the government eliminates artificial barriers to entry
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the government eliminates artificial barriers to entry, it allows new firms to enter the market, which increases competition. This, in turn, reduces prices to consumers. While firm profits may be affected, it is not clear whether they would rise or fall, as it depends on how well established the firms are in the market. Therefore, only option B is the best choice.

When the Government Eliminates Artificial Barriers to Entry