Which Barrier to Entry Results in the Creation of a Natural

question 146

Multiple Choice

Which barrier to entry results in the creation of a natural monopoly?

• A) Legal barriers like government franchises.
• B) Economies of scale.
• C) Ownership of a vital resource.
• D) Patents and copyrights.

---

Definitions:

Technology

Business application of knowledge based on scientific discoveries, inventions, and innovations.

U.S. Productivity

measures the efficiency of production in the United States, typically gauged by the output of goods and services per unit of labor input.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Nation's Total Productivity

A measure of the efficiency of production within a country, accounting for the output of goods and services relative to input resources.