Which One of the Following Is an Example of a Natural

question 45

Multiple Choice

Which one of the following is an example of a natural barrier to entry of new firms into an industry?

• A)licensing of professions
• B)economies of scale
• C)issuing a patent
• D)a public franchise
• E)ownership of a significant portion of a key resource

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Definitions:

Global Trade Flow

Refers to the movement of goods and services across international borders, involving various economic activities and exchanges between countries.

Specialization of Labor

The division of labor into distinct tasks, where individuals specialize in specific tasks, improving efficiency and productivity.

Adam Smith

An 18th-century economist known for his writings on classical economics, including the concept of the division of labor and the benefits of free markets.

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than competitors using the same amount of resources.