Which of the Following Barriers to Entry Is Based on Licensing

question 74

Multiple Choice

Which of the following barriers to entry is based on licensing requirements,regulated distribution and safety and pollution standards that can limit or foreclose entry?

• A) Product differentiation
• B) Government policy
• C) Economies of scale
• D) Capital requirements
• E) Access to distribution channels

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Definitions:

Independent Regulatory Agency

A federal organization that creates and enforces rules in its specific sphere of influence, independent of executive control.

Government Corporation

A business owned by the government that operates with a degree of independence to provide services that could be commercial in nature.

Civil Service

The body of government employees who are employed on merit system principles, excluding military and political appointments.

Partisanship

Devotion or allegiance to a particular political party or cause, sometimes resulting in a polarized political environment.