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Which of the Following Is Not an Example of a Barrier

Question 6

Multiple Choice

Which of the following is not an example of a barrier to entry?


A) An incumbent firm already using the most efficient production method establishes a first-mover advantage by identifying its product as the industry product.
B) A government requires firms seeking to enter an industry to obtain a license to operate.
C) The industry is characterized by significant diseconomies of scale.
D) Ownership of key inputs used to produce the industry product is concentrated among a few firms.

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