There Are Several Types of Barriers to Entry That Can

question 113

Multiple Choice

There are several types of barriers to entry that can create a monopoly.Which of the following barriers is the result of government action?

• A)network externalities
• B)public franchise
• C)economies of scale
• D)control of a key resource

---

Definitions:

Obligations

Duties or responsibilities enforced by law, contract, or social norms that one party owes to another.

Secondary Parties

Individuals or entities that are indirectly involved in an agreement, transaction, or process, differing from the primary parties who are directly engaged.

Indorsers

Parties who sign a negotiable instrument, such as a check or promissory note, over to someone else, thus transferring their rights related to the instrument.

Acceleration Clause

(1) A clause in an installment contract that provides for all future payments to become due immediately on the failure to tender timely payments or on the occurrence of a specified event. (2) A clause in a mortgage loan contract that makes the entire loan balance become due if the borrower misses or is late making monthly mortgage payments.