Which of the Following Statements About Government Regulations in the Context

question 42

Multiple Choice

Which of the following statements about government regulations in the context of entry barriers of an industry is true?

• A) Government deregulation in an industry results in significant reduction in competition.
• B) Government regulation is not a major entry barrier for any industries.
• C) Falling entry barriers due to government deregulation results in higher competition and lower industry profit rates.
• D) The threat of new entrants is reduced when the government deregulates an industry.
• E) Companies that enjoy brand loyalty and have significant scale economies are the ones who face major threat of competition due to government deregulation.

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Definitions:

Statistical Tests

Procedures used in statistics to determine the significance or reliability of collected data or observed differences.

Quantitative Research

A systematic investigation technique that focuses on quantifying the collection and analysis of data, often using statistical tools.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Statistical Tests

Quantitative methods used to determine whether hypotheses about data are supported or refuted.