There are several types of barriers to entry that can create a monopoly.Which of the following barriers is the result of government action?

Question

Quizplus · Accepted Answer

A public franchise is a government-granted right to operate as a monopoly or near-monopoly in a certain market or industry. This type of barrier to entry is the result of government action, as it is the government that grants the franchise. The other options are not necessarily the result of government action: network externalities occur when the value of a product or service increases as more people use it, economies of scale occur when a company can produce at lower costs as it grows, and control of a key resource can be the result of various factors such as ownership or control of a technology, access to raw materials, or simply being the first to discover and use a particular resource.

There Are Several Types of Barriers to Entry That Can