An Example of a Government-Imposed Barrier to Entry Gives a Firm

question 169

Multiple Choice

An example of a government-imposed barrier to entry gives a firm the exclusive right to a new product for a period of 20 years from the date the product is invented.This entry barrier is known as

• A)a copyright.
• B)a patent.
• C)an exclusive marketing agreement.
• D)a tariff.

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Definitions:

Revolving Credit Agreement

A credit arrangement that allows a borrower to withdraw, repay, and re-borrow funds up to a specified limit over a set period.

Agreed Limit

An agreed limit refers to a predetermined maximum amount that an insurance company agrees to pay out for a specific claim or coverage.

Policy Decisions

Decisions made by an organization's leadership or governing body that set its policies, determining strategic direction and actions.

Marketable Securities

Financial instruments and assets that can easily be converted into cash quickly, with high liquidity and short maturities.