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:

Auction

A public sale in which goods or property are sold to the highest bidder.

Revocation

The act of officially withdrawing, cancelling, or reversing a decision, offer, or statement.

Counteroffer

A response to an original offer which modifies conditions or proposes new terms, effectively rejecting the initial offer and becoming a new proposal in the negotiation process.

Lapse Of Time

The expiration of a specified duration, after which legal claims may be void or rights may expire.