Jane is a dietician in a city that twenty years ago voted to restrict the number of dieticians in the city to five and to regulate their prices.Although the city has tripled in size during that time (and thus demand has increased),no new dietician licenses have been issued.Over the years Jane and the other license holders have begun offering a wide variety of perks to their clients to maintain market share.It is clear that the initial restriction on licenses gave Jane a _____.

Question

Quizplus · Accepted Answer

The initial restriction on licenses limited competition and allowed Jane and the other license holders to benefit from increased demand without facing new entrants into the market. This advantage, gained at the time of the restriction, is a transitional gain.

Jane Is a Dietician in a City That Twenty Years