A Natural Barrier to Entry Is Defined as a Barrier

question 22

Multiple Choice

A natural barrier to entry is defined as a barrier that arises because of

• A) technology that allows one firm to meet the entire market demand at lower average total cost than could two or more firms.
• B) patents or licenses that exclude others from producing a good or service.
• C) many firms producing the good and thereby allowing choice for all consumers.
• D) anticompetitive practices by a firm that keep other firms from producing.
• E) one firm owning a key natural resource.

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Definitions:

Rheumatic Fever

An inflammatory disease that can develop as a complication of inadequately treated strep throat or scarlet fever, affecting the heart, joints, skin, and brain.

Scarlet Fever

An infectious disease characterized by a red rash, high fever, and sore throat, caused by certain strains of streptococcal bacteria.

Confluent Macule

A flat, distinct, discolored area of skin that may merge with other macules to form a larger patch.

Intravenous Drug Abuse

The practice of using needles to inject drugs directly into the bloodstream for recreational purposes.