Which of the Following Is an Example of a Barrier

question 410

Multiple Choice

Which of the following is an example of a barrier to entry? (i)
A key resource is owned by a single firm.
(ii)
The costs of production make a single producer more efficient than a large number of producers.
(iii)
The government has given the existing monopolist the exclusive right to produce the good.

• A)(i) and (ii) only
• B)(ii) and (iii) only
• C)(i) only
• D)(i), (ii), and (iii)

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Definitions:

Brain Drain

The emigration of highly trained or qualified individuals from a particular country or region, often due to better opportunities or living conditions elsewhere.

Economic Efficiency

A condition in which a system is capable of producing maximum desired outputs from given inputs without wastage, reflecting optimal allocation of resources.

Information Flow

The movement of information within and between entities, which is crucial for decision making and operations.

Politically Authoritarian

A governance system marked by strong central power and limited political freedoms and personal rights.