Barriers to Entry Do Not Occur When

question 89

Multiple Choice

Barriers to entry do not occur when:

• A)economies of scale in production exist in an industry.
• B)the government requires a professional license or franchise agreement.
• C)the firm that introduces a product is granted a patent.
• D)a firm controls a scarce resource.
• E)diseconomies of scale in production exist in an industry.

---

Definitions:

Equal Variances

The assumption that two or more populations have the same variance.

Bonferroni Adjustment

It's a statistical correction method used to adjust confidence intervals or significance thresholds when multiple comparisons are made, reducing the chance of a type I error.

Type I Error Rate

The probability of rejecting a true null hypothesis, equivalent to the significance level of the test.

Type II Error

The mistake made by not rejecting an incorrect null hypothesis, often referred to as a false negative.