Which of the Following Is the Best Example of a Barrier

question 80

Multiple Choice

Which of the following is the best example of a barrier to entry into a monopolistic industry?

• A)diminishing returns
• B)comparative advantage
• C)high price elasticity of demand
• D)a public franchise

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Definitions:

Breach of Duty

Occurs when an individual or entity fails to fulfill their obligations or standards of care required by law or contract.

GAAP and GAAS

GAAP (Generally Accepted Accounting Principles) refers to a set of accounting standards and practices. GAAS (Generally Accepted Auditing Standards) refers to the standards guiding audits of financial statements.

Engagement Letter

A formal document outlining the scope of services to be provided by a professional firm, often used in accounting and legal services.

Contract

A contract is a legally binding agreement between two or more parties that outlines obligations, rights, and duties that each party agrees to perform or honor.