Economics: The Basics 1st Edition by Mike Mandel

Exercise 9

Someone wants to open a new restaurant in town. Decide whether each of the following would be a barrier to entry. Explain.
a) None of the available property in town is zoned for business use.
b) The price of tablecloths has risen.
c) Consumers buy only from businesses they know.
d) The town requires all businesses to pay a hefty annual permit fee.
e) The town requires new businesses to pay a hefty permit fee.