Three Natural Barriers to Entry Are

question 164

Multiple Choice

Three natural barriers to entry are

• A) control of resources,patents and copyright law,and licensing.
• B) economies of scale,problems raising capital,and control of resources.
• C) problems raising capital,patents and copyright law,and licensing.
• D) control of resources,patents and copyright law,and economies of scale.
• E) control of resources,economies of scale,and licensing.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.

Subsidies

Financial support provided by governments to individuals, businesses, or institutions to promote certain activities deemed beneficial.

Higher-Valued Uses

The allocation of resources or goods to their most profitable or beneficial applications, typically where they contribute the most to welfare or profitability.

Lower-Valued Uses

Activities or allocations of resources that do not maximize potential value or returns compared to other uses.